BAHÇEŞEHİR ÜNİVERSİTESİ

INSTITUTE OF SOCIAL SCIENCES Marketing Management Case: Accenture –

Rebranding a Global Brand Etem KAVAK

December 2012

In 1954World’s first

business computer for

General Electric installed,

To automate payroll

processing and manufacturing

at GE

In 1942Arthur Andersen & Co. created an early

version of the consulting unit when

it formed the Administrative

Accounting group In 1980The consulting

business boomed. Research concluded

MICD’s ‘image among non-

clients undifferentiated from remaind

big 8 Company History

In 1913Age of 28.

Northwestern University economics

professor Arthur Andersen founded the accounting firm Arthur Andersen &

Co.

In the 1950sArthur Andersen began offering

consulting services to companies wishing to

implement information systems,

and renamed the unit the

Administrative Services Division

In 1970sThe Administrative Services Division

broadened the scope of its business

beyond “the design and implementation

of systems” to include “the conduct of studies to produce

the information needed by

management to direct the activities of

its organization.”

In 1977The

Administrative Services Division

became the MICD

HISTORY

1-Arthur Andersen 2-Arthur Young & Company 3-Coopers & Lybrand 4-Ernst & Whinney (formerly Ernst & Ernst) 5-Haskins & Sells (merged with European firm to become Deloitte, Haskins and Sells) 6-KPMG (formed by merger of Peat Marwick International and KMG Group) 7-Price Waterhouse 8-Touche Ross

Accenture MilestonesROADMAP

1989 IndependentBU form

Arthur Anderson

In 2000Andersen

Consulting was granted its

independence

License to expire Dec 31, 2000

Spending $7 billion

01. January. 2001

Image Initiative Respond to image crisis, MICD decided to embark on an

«image initiative» in 1987…

Generate awareness To differentiate itself in the IT services To distance itself from its accountancy heritage

image Selection of a new name for MICD

Providing separation from Arthur Andersen Benefiting from its brand equity Clear positioning in the market space with the

«consulting»

Marketing in Consulting Set a new standard for marketing a professional services

company Marketing in a strategic sense and had the courage to

create the brand and invest in it.Breakthrough –

• TV ads - New Year’s campaign - stressed Andersen Consulting’s technology expertise.

• Spent approximately $5 million in advertising during its first year.

• Team of media specialists within Andersen Consulting partnered with Burson-Marsteller, a leading public relations firm to influence industry analysts.

Marketing in Consulting

Since partners demanding proof that the results of the advertising warranted the expenditures.

Andersen Consulting conducted extensive market research, focusing ;

1-) Marketplace awareness 2-) Client Satisfaction 3-) Buyers values4-) Advertising copy testing 5-) Media monitoring

Metric Driven Performance Annual tracking studies and regular measures of the

senior executive target audience’s perceptions of the brand.

Advertising investment was drawn directly from the partners’ potential profits.

1

6%

37%

Known as System Integration Consultancy, based on research made in 1988 (5 years).

Developing Global Advertising Reasoning : Between 1980s – 1990s the consulting business growth from $3 billion to $30 billion

1994

Globally integrated advertising program initiated

Awards: Wall Street Journal for Top scoring Advertising, Business Week Award for Excellence in Corporate Advertising

First company that used airport billboard ads- 30 Airports worldwide

1990-1993Total Global Awarenessfrom 32 to 79 percent

ResultsAwareness in USAFrom 6 to 50 percent

Awareness in Europe 75 percent increased in 3 years

Brand Attributes -Creative and innovative in developing applications -Visionary-Leader

By 1998 market leader-Managemet and technology consulting-Operational strategy consulting-System integration -Business reenginerring

Arthur Andersen – Conflict period

Exploring Marketplace ConfusionArthur Andersen marketing initiatives Brand Confusion

Arthur Andersen Business Consulting Two firms becoming competitorsArthur Andersen benefitting from brand image Loss of brand equity

Increasing success of Andersen Consulting $11 billion by 2001 – financial successPersonality of the ads still relied on a clever tone and mannerA to C rebranding

Final Split Mid-December 1997, Andersen Consulting sought to split from Arthur Andersen

Andersen Consulting versus Arthur Andersen

Business Re-engineering

Strategy Consulting

System Integration

Organizational Change

Andersen Consulting %24 %18 %19 %10

Arthur Andersen %27 %17 %18 %12

1994 Unaided Awereness

Business Re-engineering

Strategy Consulting

System Integration

Organizational Change

Andersen Consulting %35 %32 %29 %23

Arthur Andersen %31 %22 %25 %18

1995 Unaided Awareness

Repositioning ANDERSEN CONSULTING• Brand Equity Measurement Initiative, Andersen ConsultingNovember, 1999

Image Awareness Consideration Preference Average

Andersen Consulting

6.5 10 9.1 5.8 7.9

McKinsey 7.2 8.4 9.2 6.4 7.8

IBM 5.3 4.9 3.6 1.2 3.8

Earnst& Young 3.8 3.2 5.3 1.9 3.6

EDS 1.9 0 1.6 0 0.7

Technology capabilitiesPoints of Parity

Points of Difference

Insight and VisionVision Statement«To help our clients create their future»

Rebranding and Repositioning process August 7, 2000, the arbitration ruling -released Andersen

Consulting from any further obligation to Arthur Andersen or Andersen Worldwide -- financial, professional…

The license to use the Andersen Consulting name was to expire Dec 31,2000

Never in history had such a large scale rebranding occurred in such a short period.

Within 147 days, the company had to unveil a name that was trademark in 47 countries, over 200 languages.Rebranding Launch Timeline

August 7-11 Aug 11- Oct Sept – Oct Nov- Dec Jan 1 2001

PLANNING BRAND DEVLOPMENT RESEARCH EXECUTE NAME

CHANGE BRAND LAUNCH

Arbitration Decision

Strategy Devp.

Creative Brief

Name Devp.Visual Identity

Brand Line & Description

Launch Plan Devp.

Market Testing

Native Speaker Review

Linguistic Analysis

Final Recommendation

Logo

Dialogue Mag.

Prelude Ads

Media /Analist Relations

Advertising DirectMktg.Accenture.comMedia / Analyst RelationsInt / Ext EventsOutlook Mag.Signage

Renamed. Redefined. Reborn. 01.01.01$75 million marketing & comm budget and additional $100 million

Brandstorming: thousands of name candidates were generated

Native Speaker review & linguistic: 47 countries and against 200 languages

URLs :51 names found to be available globally

Kim Petersen submission selected: Accenture, it rhymes with «adventure» and «an accent on the future»- Logo written in lower case- With greater-than (>) symbol which means pointing forward to the

future- «T» serving to accent the world - Lower case «a» to demonstrate that Accenture is

approachable and accessible.

Launch Efforts

INTERNAL LAUNCH • New brand and New positioning conveyed to employees : 178 offices, 47

countries, 70.000 employees, 7 million business card.

EXTERNAL LAUNCH• Television spots , New Year’s Eve celebration, Accenture branded airship,

sponsorships of other major global sporting events• High profile advertising program, over 43,000 clients received a launch

mailing which included creative packaging to announce the new name and positioning.

External Launch Efforts: Phase TwoAdvertisements were innovative and strikingSuper Bowl AdGolf tournaments sponsorship

RESULTS AND RESEARCH• Accenture IPO and Financial Results - Accenture stock was up

almost 80 percent• Need to Update the Positioning – Partnership strategy • Refining Positioning –

o Brand essence - Innovation Deliveredo Innovator , Collaborator - Retained Passionate

Ad campaign changes and the way forward

• Bringing “Innovation Delivered” to Life -> I am your Idea• Global Growth –

110 offices in 48 countries$13.6 billion in 2004Top clients Growing market $160 billion in 2008

• Competition Intensifies IBM acquires PWC HP – IT consulting Bearing Point and Deloitte – Indian companies – TCS , WIPRO ,INFOSYS

• Govt Contracts – US govt contracts awarded

• Ad campaign changes again to – “High Performance. Delivered”

Questions

Q1. How would you characterize Andersen Consulting’s brand equity in the late-1990s? What factors and decisions contributed to the building of this equity?

PRODUCT Management Consulting ServicesPoints of Difference

1. Unique position compared to competitors in that the company offered valued strategic business services and well regarded IT solutions2. “Because clients viewed IBM as a technology consultant and not a business strategist, Andersen Consulting’s reputation for insight and vision constituted a point of difference” 3. Not afraid to advertise to promote its name, image, and position

“Most professional services chose not to advertise, feeling it was inappropriate or unprofessional” First to advertise in airports

4. Personified as “creative, driven, far-sighted and innovative” Points of Parity

1. Offshoot of an accounting unit2. Proficient in information systems/ technology, “ established points of parity with technology and strategy firms” PRICE

By 1998, Andersen Consulting was the market leader in four major categories in consumer rankings of consulting firms (management and technology, operational strategy, systems integration, business reengineering)

From 1993 to 1998, billings increased by 20% annually PLACE Advertising in print, television and airports Corporate Sponsorships

PROMOTIONAwareness

o Between 1990 and 1993, total global awareness was 79% o Advertising: in 1998 had print and airport poster advertising in 30 countries o Hired PR firm to influence industry analysts, publications and press

Interesto Public Relations : Corporate sponsorships such as Williams Formula One racing team sponsor, title sponsor of Andersen Consulting World Championship of Golf and 1998 Van Gogh exhibit in Washington DC

Desireo One of the first firms to come to the consumer’s mind when thinking of business management consulting firmso High “share of mind score”, a measure of brand recognition

-Study by Harris Research: Andersen Consulting ranked first in the following categories: share of mind, value for money, uniqueness, and momentum

-Industry analyst IDC found in 1997 that IBM and Andersen Consulting had the greatest familiarity among technology buyersAction

o 1990s were successful, 68% of consumers considered Andersen Consulting as a “leader” : Billings reached $8.2 billion in 1998

DISTRIBUTIONOffices/Locations: United States, headquartered in ChicagoBy 2004, 110 offices, in 48 countries, 115,000 employees, 2,200 partners

Questions

Q2. Compare the characteristics of Accenture’s brand equity to those of Andersen Consulting. Do you think the rebranding and repositioning of the company successfully transferred the equity from the old name to the new one?

Andersen Consulting Brand Elements

Name

Slogan: “Bridging Boundaries to Create the Future”

Logo: Ac

Memorable

5 4 5

Meaningful 5 4 5

Likeable 5 4 5

Transferable

5 4 5

Adaptable 5 4 5

Protectable 5 4 5

Accenture Brand Elements

Name

Slogan: “High Performance Delivered.”

Logo: greater than symbol of the t of Accenture

Memorable 5 4 5

Meaningful 5 4 5

Likeable 5 4 5

Transferable 5 4 5

Adaptable 5 4 5

Protectable 5 4 5

Effectiveness:

1. The first rebranding of Andersen Consulting in 1999 prepared the company for the move to Accenture. Accenture was able to build off of Andersen Consulting’s brand image and associations and ultimately came out the better for it: Ac rebranding was “a rehearsal of a global brand change”

2. “Accenture” provided continuity from the name of Andersen Consulting

o AC, first two letters of Accenture o “connoted accent on the future” , similar to

previous “create the future” mission of Andersen Consulting

o Consultant created name, helped to reach employee acceptance

3. “Accenture” also provided an understandable image of the company’s new direction and position, with a unique word that could pass the global trademark tests

4. The deadline of 147 days to rebrand the company resulted in a cohesive and direct plan of action of the company, because so much was riding on the revision to be a success

a. Accenture came out of the rebranding process at a greater awareness than it was as Andersen Consulting, mostly in part to two-phase marketing strategy a. Used creative advertising, promotion and public relations to create brand recognition, brand association and brand recall

-In 2001, “awareness for Accenture was above or at previous levels for Andersen Consulting in most countries”

b. Independence from Arthur Andersen finally removes any confusion between the two entities Perfect timing, due to Enron-Arthur Andersen scandal

c. Accenture positioned itself carefully among the target market and considered global changes in the marketplace

- Accenture took advantage of these changes and offered to assist clients to do the same and turn them into opportunities with “Now it gets interesting” advertising campaign

5. Accenture did maintain equity globally and therefore the rebranding was worth its $175 million price tag

a.Accenture has maintained its position in the consideration set and actually increased equity

-“The advertising effect on purchase consideration on Accenture’s services increase 350% following the campaign”

-Repeated exposure of rebranding process to current and potential clients through global marketing efforts, Accenture achieved success

Questions

Q3. How much of a competitive threat is IBM ? How should Accenture best compete with them.

Competing with IBM

• Accenture is a management and technology consulting firm• Consulting, technology, outsourcing and alliances are its core

business• Accenture is ahead of IBM in strategic management consulting but

it lacks the technical expertise of IBM• Accenture should look to improve its technical expertise and move

ahead in managing innovation, providing clients with creative solutions/implementing client’s ideas

• It should also continue partnering with its client by providing not only consultancy but delivery and implementation

• Setting incentives that realized only if specific business targets were met should be expanded to all contracts to provide credibility to the company’s positioning of “High Performance. Delivered”

Marketing Strategy

• First in the industry• Building image and equity through creative advertising and

personifying the organization• Print advertisements to complement the broadcast commercials,

later presence on internet also• Flighted media schedules to create the illusion of more ambitious

advertising program• Public relations activity, influencing industry analysts, leading

industry publications and the tier one business press• Metrics to gauge the effectiveness of marketing• Target key prospects and clients where they lived & worked• Rigorous focus groups testing and customer insights• Sponsoring high performance sport events like F1 racing, Golf etc..

Brand Personality Dimension

Tiger WoodsBrand Personality Dimensions

Sincerity down-to-earth honest

wholesome cheerful

Excitement daring spirited imaginative up-

to-date

Competence reliable

intelligent successful

leader

Sophistication upper class

charming good looking

• Tiger Woods and Accenture– Brands take personality of the celebrities who endorse them– Tiger Woods was golf’s leading money winner in 2003– The campaign used the personality dimension of competence and the

related facets to assign the human characteristics of Tiger Wood’s to the Accenture Brand

– The world's ultimate symbol of high performance, he serves as a metaphor for commitment to helping companies become high-performance businesses

• Tiger Woods is an effective spokesman for Accenture – 1. Accenture’s objective of hiring Tiger as a spokesperson is to

humanly represent their High Performance Business Strategy sector’s strengths with a person with those same strengths

– 2. Advertisements showed Tiger in an intense competitive situation and winning due to his high performance and aptitude which then explained how Accenture too delivers high performance even in the most competitive situations and possesses capabilities, expertise and technology to aid clients receive superior results