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Integrated Communications proposal to Cognis Team 4 22 May, 2007

Integrated Communications proposal to Cognis Team 4 22 May, 2007. Cognis | Business strategy. Market-driven innovations Corporate citizen Employee focus. Market-driven innovations Intelligent solutions Customer care Biological and biotechnical production methods . Strategy for nature

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Integrated Communications proposal to Cognis Team 4 22 May, 2007

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  1. Integrated Communications proposal to Cognis Team 4 22 May, 2007

  2. Cognis | Business strategy Market-driven innovations Corporate citizen Employee focus • Market-driven innovations • Intelligent solutions • Customer care • Biological and biotechnical production methods • Strategy for nature • Natural source ingredients • Renewable raw materials • Customer care • Minimising waste • SHEQ Customer care Employee focus SHEQ (Safety and Social Responsibility, Health, Environment and Quality)

  3. Cognis | Credentials • Cognis: a ‘Worldwide supplier of innovative specialty chemicals and nutritional ingredients, with a particular focus on the areas of wellness and sustainability’ • Key values: Strategy for Nature, Market-driven Innovations, Intelligent Solutions, Customer Care, Sustainable Development • Cognis recognise the ‘importance of tomorrow’ and the need for CSR • Cognis employs 8000 people at 63 locations in 30 countries worldwide • Cognis’ ‘cultural principles’ include passion for customer success, team spirit, exceptional performance, personal responsibility, change, innovation and personal leadership

  4. Reputational attributes Customer care Passionate Forward thinking Successful Sustainable Committed Environmentally friendly Global Market-driven Speciality chemicals Wellness Market leader Responsible Innovative Corporate citizen Intelligent solutions Creative

  5. Client expectations • Design a memorable, penetrating and consistent strategic international reputation campaign using an integrated internal and external communications approach that supports Cognis’ business strategy • Key publics: journalists and employees • Targets: Brazil, China, France, Italy, Mexico, Spain, Thailand, UK and USA • Timescale: 2 years • Budget: €500,000 • The campaign should integrate marketing, public relations and internal communication channels seamlessly

  6. Publics Via media, cut through to investors / analysts & customers Communities (external) Investors / Analysts (external) Publics / Stakeholders Employees (internal) Financial & Trade Journalists (external) Customers (external) Suppliers (external)

  7. Campaign aim • To positively build Cognis’ reputation amongst employees and journalists, in line with Cognis’ business strategy

  8. Campaign objectives Employees • To enrich the relationship between Cognis and its employees within the two-year campaign period • To motivate employees to buy into Cognis’ business strategy within the two-year campaign period • To inspire employees to develop professionally within the two-year campaign period

  9. Campaign objectives Journalists • To build long term relationships between Cognis and key journalists within the two-year campaign period • To achieve positive media coverage for Cognis throughout the two-year campaign period • To deliver twenty-four newsworthy stories within the two-year campaign period

  10. Desired global scorecard Strong Average Weak Unknown

  11. Global campaign strategy Employees • To provide opportunities for relationship building and professional development whilst additionally connecting employees with Cognis’ core values Journalists • To provide opportunities for relationship building and connecting journalists with Cognis’ core values through transparency

  12. Current situation | analysis Brazil | Budget allocation: € 41,500 / 2yrs. Strong reputation with community, trade journalists & suppliers Scorecards analysis - Reputational weaknesses Employees - vision & marketing orientated

  13. Current situation | analysis China | Budget allocation: € 83,000 / 2yrs. Good reputation with customers, community, investors & suppliers Scorecards analysis - Reputational weaknesses Employees - innovation & vision Trade & financials journalists - unknown

  14. Current situation | analysis France | Budget allocation: € 41,500 / 2yrs. Good reputation with customers, community, investors & suppliers Scorecards analysis - Reputational weaknesses Employees - vision Financial journalists & suppliers - communication & financially strong General journalists & investors - unknown

  15. Current situation | analysis Italy | Budget allocation: € 41,500 / 2yrs. Good reputation with customers Scorecards analysis - Reputational weaknesses Employees - communication & vision Financial & general journalists & investors - unknown Suppliers - financially strong

  16. Current situation | analysis Mexico | Budget allocation: € 41,500 / 2yrs. Scorecards analysis - Reputational weaknesses Employees - good employer, communication, strong management & vision Community - sustainable development Trade, financial & general journalists & investors - unknown

  17. Current situation | analysis Spain | Budget allocation: € 41,500 / 2yrs. Scorecards analysis - Reputational weaknesses Employees - market orientated, wellness, communication, financially strong & vision Community & trade journalists - market orientated, wellness & communication Suppliers - market orientated

  18. Current situation | analysis Thailand | Budget allocation: € 41,500 / 2yrs. Unknown Scorecards analysis - none

  19. Current situation | analysis UK | Budget allocation: € 83,000 / 2yrs. Unknown Scorecards analysis - none

  20. Current situation | analysis USA | Budget allocation: € 83,000 / 2yrs. Good reputation with customers & suppliers Scorecards analysis - Reputational weaknesses Employees - innovation & financially strong Community - innovation Financial & general journalists & investors - unknown

  21. Current situation | analysis

  22. Budget | Global allocation Country Allocation Budget/2yrs. Budget/yr. Brazil 1/12 € 41,500 € 20,750 China 2/12 € 83,000 € 41,500 France 1/12 € 41,500 € 20,750 Italy 1/12 € 41,500 € 20,750 Mexico 1/12 € 41,500 € 20,750 Spain 1/12 € 41,500 € 20,750 Thailand 1/12 € 41,500 € 20,750 UK 2/12 € 83,000 € 41,500 USA 2/12 € 83,000 € 41,500 Total: € 498,000 € 249,000 Contingency: € 2,000 € 1,000

  23. Campaign | United Kingdom

  24. Hythe plant (Southampton) Constructed 1959  Cognis 2003 190+ employees Activity Production Product development Sales and administration Produces Synlubes Coatings Graphic Arts Polymerization Polymer Building Blocks Barry plant (Glamorgan) 10+ employees Activity Production Blending Packaging Distribution Quality assurance laboratory Storage warehouse Produces Plastics Cognis in the UK

  25. Strengths Centralised control through product development, production and sales World leading producer Accredited Investor’s in People Organisation Strict regulation on health, safety, environment and quality programmes Strong focus on employee satisfaction Strong focus on CSR with regular donations made to a variety of good causes across the world Driver of innovation Concerned with finding new ways to save energy Weaknesses Company segmented with possible low market-orientation Cognis currently unaware of reputation in the UK with key publics (no UK scorecard) SWOT | UK | Micro

  26. Opportunities Large company, therefore potentially more influential in lobbying UK public increasingly concerned about the environment and sustainability, giving Cognis the opportunity to hijack issues Emerging markets create opportunities such as male grooming products Recognised as a standard setting company in terms of economic, ecological and social standards for others to follow. Threats Subject to scrutiny due to the increased societal concern about the environment and safety of products New laws addressing concerns about chemical pollution and its affect on public health and the environment Trend for products containing natural ingredients and away from chemically developed products Stricter legislation on the transportation of dangerous goods, leading to restrictive distribution channels SWOT | UK | Macro

  27. Competitor analysis | UK Main UK competitors (see Appendix): ICI, Dow, Nippon Shokubai, Uniqema (part of Croda), Degussa and Sartomer • Large multinational corporations with specialist knowledge within the chemical industry • Broad range of products, with focus on the use of environmentally friendly ingredients • Cover extensive markets around the world, such as the USA and Asia, where Cognis also has plants • All put emphasis on CSR through adding value to community relations • Large number of employees per company which increases the pressure on Cognis to recruit a highly-skilled workforce

  28. Cultural considerations | UK • Members of an organization or society tend to feel equal therefore, it would not be a problem to organize open days and invite representatives of different positions within the company • Key audiences should not be invited to press events as part of large groups but be given more individual attention in order to create good business relationships • There is not a substantial need to have written rules and regulations, but as the UK is more future oriented, the relationship with employees, the community and journalists is essential if Cognis wish to have support in carrying out their activities • Monthly newsletters, a company intranet, developing relationships with regional journalists, addressing issues brought up by the community, would be beneficial to Cognis to build and maintain relationships • Assertive and competitive values are favoured

  29. Media infrastructure | UK Print Free media, trade and consumer media most commonly targeted in campaigns National newspapers have largest readership circulations, however stories must be news worthy to get coverage in these publications Online Most households in the UK have media access Newswires used most commonly by public relations practitioners, both National and International coverage Broadcast - TV Regional, National and International channels Outreach opportunity Feature on television is free, however advertising is not Broadcast - Radio At least one radio pr household State and privately owned stations BBC Radio is one of the biggest media owners in the UK with nearly 33 million people listen to BBC Radio each week

  30. Tactics | Journalists | UK ‘It’s not easy being green’ Concept • Building on Cognis’, ‘wellness and sustainability’ strategy, ‘green’ credentials and ‘citizen’ status • Building on green issues on the public agenda – demonstrated by reality TV programmes such as ‘It’s not easy being green’ • Forge a relationship between Cognis and a key environmental activist group such as Greenpeace, who hold status and influence in the public arena • Invite Greenpeace to tour the Hythe plant with a Cognis and RAISE rep. explaining green measures from product concept, right through to sales, allowing for Q&A • This will generate newsworthy stories written in collaboration with Greenpeace • The concept places Cognis in a pioneering role, taking a lead on environmental issues in society and creating a new edge on its competitors Considerations • The concept is innovative, forward-thinking and shows understanding of societal interests, however it does pose some risk • The relationship should therefore be built on honesty, trust and transparency • Cognis should be prepared to act and negotiate with activists if areas for improvement arise

  31. Media Print Financial Mail on Sunday - Consumer The Economist - Consumer The Daily Telegraph - Consumer The Financial Times - Consumer The Guardian - Consumer The Independent - Consumer The Times - Consumer Financial Management - Trade & Financial Financial News - Trade & Financial Chemical and Engineering News - Trade & Financial Chemical Processing - Trade & Financial Chemical Technology - Trade & Financial Chemical Week - Trade & Financial European Chemical News - Trade & Financial Chemical News Intelligence - Trade & Financial Environmental Data Services - Trade & Financial BBC Focus - consumer New Scientist - consumer Scientific America - consumer The Ecologist - consumer Earth Times - consumer Online Reuters.com Press Association Cognis Intranet Broadcast - Radio Moneymattersradio.net BBC Radio 4 Regional radio programmes • Broadcast - TV • Working Lunch - Consumer • BBC Breakfast - Consumer • The Money Programme - Consumer & Trade

  32. continued… Timing • No time frame, stretched over campaign • Could tie in with national ‘environment week’ and / or university and higher education institutions • Could create ‘Cognis environment week’ Resources • Access to Cognis representatives and plant • Access to Cognis community projects

  33. Tactics | Journalists | UK ‘Conception to birth – five years of product innovation’ Concept • Building on Cognis’, ‘innovative’, forward-thinking, market leader strategy • Building on Cognis’, ‘customer care’, ‘wellness and sustainability’ focused product innovation • Build a newsworthy story for trade and consumer press on the development of products from the conception of an idea to the birth of a product using a visually striking graphic • Further interest could be generated by inviting journalists to tour a Cognis UK plant to see the product lifecycle from the creation of initial concept, through to formulation, development, production and sales • Environmental credentials would be reiterated • This concept is innovative illustrates how consumer desires are fuelling product formation Timing • Coincide with Cognis’ presence in the UK for 5 years in 2008 Resources • Access to Cognis representatives and plant • Access to Cognis community projects

  34. Example graphic

  35. Tactics | Community | UK Concept • Building on Cognis’ ‘corporate citizen status’ • Reinforcing Cognis’ community, ‘people’ and ‘Wellness’ values – living out Cognis’ credentials • Providing professional development opportunities for employees • Forges a relationship between Cognis and the surrounding communities Educational schemes • Develop schemes in local schools and universities close to Cognis’ plants - building upon successful schemes in Germany and Thailand • Cognis Science Week • Activity supports local councils efforts with the national curriculum in schools Community Q&A evening • Invite local community to a Q&A evening, allowing for feedback, socialising and relationship building PR Coverage • Organise regular columns in regional newspapers and slots on local radio stations promoting these events and initiatives

  36. Tactics | Journalists | UK Plant tours • Invite key journalists to tour the plants with a Cognis and RAISE rep, endorsing key values throughout the complete product life cycle and allowing for Q&A Press kits • Develop press kit resources with interactive media releases such as podcasts • Continued press releases on product development and CSR • Maintain image library • Use recycled or environmentally friendly produced paper and no printing where possible Trade shows • Ongoing presence at trade shows • Utilise latest developments and corporate social responsibility activities • Building relationships with key journalists • Entertain journalists

  37. Tactics | Employees | UK Monthly newsletter • Distributed via email and printed copies in staff areas, for those who do not have access to computers • Will contain company innovations, figures, personal development opportunities, employee achievements and personal congratulations Overseas visit • Staff opportunities to visit international plants to meet fellow employees • Exchange opportunities would increase market orientation and personal staff development Social activities • BBQ’s, social outings and residential team building weekends Cognis environment week • A week where employees are encouraged to be environmentally friendly and inhabit Cognis’ core values

  38. Budget | UK Year One Year Two Journalists Tours around the plant £ 2,000 £ 2,000  Press kits £ 2,000 £ 2,000 Trade shows - - Communities Educational scheme £ 4,000 £ 4,000  Q&A evening £ 1,500 £ 1,500 Employees Monthly newsletter £ 2,000 £ 2,000 Overseas visits £ 4,000 £ 4,000 Social Activities £ 3,500 £ 3,500 Agency Fees £ 4,500 £ 4,500 Contingency (additional funding from global contingency) £ 100 £100 Total £ 26,500 £ 26,500

  39. Time schedule | UK | 1st quarter

  40. Time schedule | UK | 2nd quarter

  41. Time schedule | UK | 3rd quarter

  42. Time schedule | UK | 4th quarter

  43. Campaign | Brazil

  44. Strengths The chemical industry plays a leading role in the development of several economic activities in the country, contributing actively to nearly all production chains and industrial plants, including services and agriculture. The industrial chemicals sector with total sales of US $39.1 billion, accounted for 56.3% of the chemical industry’s net revenues for 2005. Chemical product imports achieved a record US $15.5 billion, representing 20.8% of all foreign purchases made by the country. SWOT | Brazil | Micro

  45. Opportunities Brazil's industrial sales grew by 3% in January 2007 compared to December 2006 and by 6% compared to January 2006 The sectors that led this performance were chemical and oil products, responsible for almost 60% of all industrial sales growth The favourable international scenario was the main reason that the country was able to increase sales and achieve record commercial balances. It is obvious, that this opportunity can only be made good by the work performed by the companies, by means of diversification of the export matrix and the opening of new markets. the government also acted by introducing some effective changes to legislation and attempted to encourage exporters. The strong growth of Brazilian chemical product imports, which nearly doubled in 10 years, is an obvious indication of the need for investments in the sector to increase capacity and build new industrial plants. Threats Measured in domestic currency, the Real, the Brazilian chemical industry’s revenues decreased 3.9% Industrial chemicals sales in the domestic market dropped 1.6% as compared to 2004. The appreciation of the Real in relation to the Dollar, the high interest rates and the lack of public investments were the main factors influencing the performance of the end use chemical products segment in 2005. The activities of the chemical industry are being subjected to a great number of laws, decrees and rules introduced by the federal government, by the state governments and by the municipalities. SWOT | Brazil | Macro

  46. Competitor analysis | Brazil • Chemyunion: • Is a worldwide operating chemical Company located in Brazil • Especially concentrate on care chemicals • Highly biological products (Rain Forest) • Specializes in: • Respect for Nature • Help support local communities • Oxiteno: • Latin American (Mexico) and South American (Brazil) chemical company • 3 Plants in Brazil • Main Plant in Camaçari is Latin America's largest producer of ethylene oxide and derivatives • Product lines: • Ethylene oxide, • Ethylene glycols, • Ethanolamines, • Glycol ethers

  47. Competitor analysis | Brazil • Ionquimica: • A rather small chemical company covering the area of South- and Latin America • Supply international cosmetic and pharmaceutical market • Product line: • Self-emulsifying base • Quaternary • Fatty Acid Ester • Clariant: • One of the leading leading company in this field of industry • Although Brazil is not its main focus, Clariant is (always) a respectable competitor • Has a special focus on saving the environment • Espesially in Brazil, Clariant´s product line concentrates on: • Care Chemicals • Nutition & Health

  48. Media infrastructure | Brazil Major Newspaper/ Magazines: ( - general - ) • Diario Popular: (www.diariopopular.com.br) R.G. do Sul • Jornal do Brasil: (jbonline.terra.com.br) Rio de Janeiro • Nacional: (www.onacional.com.br) Brasilia • Globo: (oglobo.globo.com) Rio de Janeiro Major Newspaper/ Magazines: ( - business - ) • Jornal da Trade: (www.jt.com.br) Sau Paulo • Gazeta Mercantil: (www.gazeta.com.br) Sau Paulo • Jornal do Commerico:(www.jdc.com.br) Rio de Janeiro • Valor Noticias: (www.valoronline.com.br) Sau Paulo

  49. Local Newspapers/ Magazines:( - general / business - ) • Jornal da Trade: (www.jt.com.br) Sao Paulo • Gazeta Mercantil: (www.gazeta.com.br) Sau Paulo • Diario de Sao Paulo: (www.diariosp.com.br) Sau Paulo • Imparcial (oimparcial.uol.com.br) Sau Paulo

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