Building Business

March 25, 2009

Positive Movement in a tough environment

A tough headwind

“When times are tight, even the huge agencies go after the tiniest of accounts," Ann Billock, Ark Advisors.

-but-We have increased agency awareness in market:

• Agency hires• Upcoming new LED and Bluetooth announcements• Future M&A announcements

Increased traction with Samsung

First RFI from a top-tier search consultant for ConocoPhillips

Identified key prospects and have begun regular contact program

Most importantly the Cheil story (Why Cheil?) continues to get stronger

Why Cheil?

We have an unmatched passion for deeply immersing ourselves in all aspects of clients businesses. The process of immersion fuels the engine that allows us to create Ideas that Build Business. One of these ideas was cited as one of the Ten Best Branding Ideas by Brandweek. The next time you go on a business trip look for the Samsung Powerpole charging stations. These examples of marketing as a service are now found in over 30 airports around the world. That was our idea.

We are nimble. And we would not have thrived in the ever-changing consumer electronics field if we were not. (Speed to market is not just a competitive advantage anymore; it is a requirement for survival).

We are the biggest small agency or the smallest big agency. Our mix of small agency entrepreneurship combined with our international capability (we are part of the 16th largest agency system in the world) provides an offering not found elsewhere.

We are experts in translating the complex into the simple. When we discovered that 80% of those purchasing an HDTV used CNET to research before purchase, we built a store for Samsung right on the CNET site. That old adage is true: Location. Location. Location.

Why Cheil?

We are hungry. We are dedicated to maintaining and growing Samsung, a company that is consistently rated as one of the most innovative in the world. But we also know that to succeed we need to grow. That is why we have made a major commitment to rapidly build Cheil.

That commitment is reflected in the additions we have recently made. Jennifer Friedberg, our General Manager joined sixth months ago. Since that time, and in conjunction with the new President, Michael Kim, Cheil has begun building a truly remarkable marketing team.

In January, Timothy Bruns joined to become our Executive Creative Director. In early February Arun Bordoli joined as Executive Strategy Director. In March, Rick Martinez joined to become our Executive Director of Planning. This core group provides Cheil's existing clients and our future clients with the breadth of expertise, the talent and the unbridled enthusiasm necessary to meet the coming market challenges.

Yes, not many have heard of us. That…is about to change.

Going Forward

Overall Business Development ObjectivesAcquire leadsGet new clients-setting the stage for future growthRaise awareness and profile of CheilBuild revenue

My GoalsFocus new business efforts1. Aggressively increase outbound efforts

Identify qualified leads Build outbound contact strategyReach out to prospects regularly

2. Develop marketing materials3. Manage RFI/RFP and pitch process

Focusing New Business Efforts

Increase Acquisition efforts1. Aggressively target and reach-out to likely leads.2. Secure meetings with search consultants.3. Increase agency use of personal contacts.

Develop agency marketing materials4. Develop a clear, consistent and singular agency position.5. Build a first class case studies library.• Finish agency boilerplate materials.• Rapidly increase agency presence/awareness in the marketplace.

1. Acquisition- Aggressively work the primary target groups

There is every reason to continue regular contacts even as we refine agency materials (don’t wait for everything to be done).

Each contact we make helps us refine the process.

Each contact increases our visibility.

Primary Target group were defined as follows:

1.Non-

Conflicting CE or Tech

Prospects

5.Search

Consultants

2.New Media

6.Korean

Prospects

3.Employee Referrals

4.Health Care/

Environmental Technology

Target groups

1. Acquisition- Current Contacts Status

ProspectsCosta Rican Tourism Awaiting Word End of March/Beginning AprilCable Website Opportunity Contact via Sela/No go too small/VTECH Email sent/Phone follow-up 2nd call 4/6Lojack Email to be sent 3/31Garmin Email to be sent 3/31Magellan Email to be sent 3/31CDW(closed pitch) Contacted/response sent on to consultant/Follow-up with Rojek

(see below)Search ConsultantsRoth/Conoco Awaiting next cut decision/Setting up breakfast with Dick RothSRI/Catherine Bension Email/filling out SRI 1 Pager/ Finish 4/20(Agency POV)AAR/Ann Billock Email/setting up meeting/signing onto their database/Finish 4/6Rojek Email Contact/Enter Cheil info into database/ Finish w/o 3/30Pile Email Contact with Judy Neer/Consider upgrade of ComPile

site listing/CB POV w/o 4/6Joanne Davis Setting up breakfast in mid AprilHasan Ramsuvic Email contact w/o 3/30 (On vacation this week)Brian Martin Emailed 3/25Michael Keeshan Emailed 3/25

1. Acquisition- Current Contacts Status

Personal ListDC Comics Had initial meeting/Follow-up Mid AprilCoriolis Ventures Had meeting/no further contact for 3 months pending

their research New York Hilton Trying to set up meetingRJ Palmer Meeting w/President w/o 3/30 or 4/6CMO @ kgb Breakfast meeting in mid-April

Employee ListNeed more contacts

1. Non-Conflicting CE or Tech Prospects

2. Prospects: Health Care/Environmental Technology

2. Acquisition-Search consultants

While we need to continue an email outreach to our prospect list it is equally critical that we begin meeting with the search consultants.

If we can change their current beliefs it will confirm that we are moving in the right direction.

Current StatusOut reach to consultants has been on-going.Our first invitation was with recent Conoco RFI. Have contacted Roth/No word on

whether we go forward.In addition contact with SRI, ARC and Rojek have all been positive. Outbound contact to

this group has been a primary goal with 2 to 3 contacts a week.

2. Acquisition-Search consultants

What needs to be done?W/O 3/30 Meet w/Timothy to discuss reelW/O 4/6 Develop Estimate for reel/ Identify if there are any interactive

search consultantsW/O 4/13 Finalized agency positioning. (see section 4)W/O 4/13 Rough-cut agency reelW/O 4/20 Beta test agency POVMAY Begin agency road-show

3. Acquisition-Personal Contacts

Everyone in this agency needs to understand that they are all in the business of new business.

They need to work those clients.For every cold email I sendFor every contact with a search consultant that I get…

These personal leads are far, far more likely to yield someone who will gives us a second look, give us a project, recommend to a friend and ultimately give us their account.

3. Acquisition-Personal Contacts

Why does this need to be done?Because it is the fastest way to get new business in the door.

What needs to be done?W/O 3/17 CB Provided RMO w/excel templates for agency personnel

experience/Investigate W/O 3/23 Investigate current agency compensation for new businessW/O 3/30 Senior management to develop personal “hit list” to CBW/O 4/13 Agency personnel sheet completedW/O 4/20 CB to develop agency primer (“elevator speech”)W/O 4/20 Senior mgmt to begin reach out campaign

4. Marketing Materials-Agency Positioning

Cheil needs a clear positioning based on our strengths and weaknesses.Many “positioning / philosophy” statements are extant.

Passion For Ideas Idea Engineers Ideas that Work Idea AgencyBlackboard visual Integrated-Accountable-Connected

Our positioning should be client/results focused, not agency focused. It needs to avoid the cliché.It needs to be a rallying point for the way we approach marketing challenges.

Why does this need to be done?It will guide all agency outbound communication as well as how act and think.

CHEIL STRENGTHS

SAMSUNG PERCEPTUAL STRENGTHS

CLIENT NEEDS

Agency Position

Cheil Strengths: Immersion Approach, High & Advanced Technology ExperienceEarly Adopter ExperienceDiversified Experience and StaffRetail channel Expertise, Global

networkInteractive leadershipNew Media Leadership

Samsung Perceptions/Strengths: Competes in fast changing

marketplace Manufacturer of TVs/Mobiles/CEInnovativeCutting Edge Design New ProductsTechnology or TechieLarge & Fast growingAsian –KoreanEarly Adopters

4. Marketing Materials-Agency Positioning

What needs to be done?3/30 Review Cheil SWOT with Rick, Jennifer, Timothy, Arun, Marc4/6 New Positioning ideas developed/agreed to4/13 5-6 page “Positioning deck” due4/20 Mid April “Beta” test positioning with search consultants.

5. Marketing Materials-Case Studies

We need to develop a core group of case studies that reflect the overall agency positioning. Each study will then be modified on a case by case basis. The agency has some great cases that we have used in pitches as well as in solicitation and RFP materials:

Phase 1 Cases1. We built the number 1 HDTV brand, surpassing Sony. 2. We created Powerpoles.3. We did not just advertise products we even named them. (ToC, among others).4. We created a social network built around Moms and laundry.5. We believed that if you built a store near where everybody went you would sell more

product.• We tied together two great names (Samsung + NFL) in a marketing program that built

brand and moved product.• We let the consumer express his views at the stadium (NFL Shoutout).

5. Marketing Materials-Case Studies

Why does this need to be done?We will need clear and concise case studies for every RFP/RFI and Pitch.In addition we will use them in all outbound materials and several should be featured on

the revised website

What needs to be done?W/O 4/6 CB to put all cases into one format/Review formatting w/creative

department to develop long and short versionsW/O 4/20 Finalize case studies

Based on current work load it would appear that I will be writing all of the case studies.

ConsiderationsWe should consider developing agency “Video-case studies” for site as well as agency

reel.

5. Marketing Materials-Case Studies

Phase 2 Cases1. Hankook2. Experiential marketing group (this is key)3. Online training4. Samsung Experience5. International Capabilities6. New Media Capabilities7. Others TBD

What needs to be done?W/O 4/20 Begin development of Phase 2W/O 5/11 Phase 2 cases completed

5. Marketing Materials-Case Studies

Phase 3 CasesWe need to investigate the capabilities of the senior management team and develop

case studies based on their experiences.For example during the Costa Rican pitch we feature Timothy’s Jamaican Tourism

experience.Based on conversations with search consultants it is fair for agencies to discuss and

feature past worked with the following caveats:• The agency must indicate that the work is not theirs.• The work is relatively recent (No older than 1-1.5).• The person really did the work (especially important when showing creative).

What needs to be done?MAY Begin development

6. Marketing Materials Agency Boilerplate

Agency Fees and Billing Media Spending breakdownAgency Clients ConflictsAgency Philosophy Key StrengthsNames & Titles Organization chartEmployee count Reel/Video case studies

Why does this need to be done?We will need all of this material for every RFP/RFI and Pitch.

Current StatusParts of the modules have been prepared for various new business uses.

6. Marketing Materials Agency Boilerplate

What needs to be done?W/O 3/16 Requested agency billing/spending by media information. W/O 3/30 Primary materials completed. W/O 4/6 All Search consultant requests for this information

(SRI/Rojek/ARC fulfilled

7. Increase Agency Presence

Agency Public Relations/OutreachPR consultant

Conferences/Events/Speaker OpportunityDespite economic situation now is the time for Cheil to appear at events

• Mirren New Business Conference (Best Practices/Search Consultants)• ANA • AAAA Leadership• Adclub of New York• Consider sponsoring an event/having speaker during Advertising Week in

September• Effie Judging

7. Increase Agency Presence

New Intellectual Capital/ToolsWhite Papers – need to develop topics and decide on authorsFor example: “Crossing the Digital Divide”, Tech Users, Early Adopters, Asian Influences,

What Building the #1 TV Brand in the US Has Taught Us Not to Do, “Letting Consumers Touch the Brand: What We’ve Learned at the Samsung Experience

Industry/Association Talks or ForumsWe need to be continually generating our POV on specialized or specific topics

Awards ShowsIdentify Tier 1 and Tier 2 awards

A little assistance

1. Agency Personnel Experience Royce is working on this2. Contact list organization Consider options such as Sales force or

Goldmine.Or develop excel list

3. Attend Mirren Conference This is a critical new business conferenceand features key search consultants

4. Creative review Need to know what creative is coming and when

5. Creative materials Need assistance in building the creative library

Gauging Success

Difficult to predict given the following:Economic instabilityCheil awareness remains low (but building) Still perceived as a 1 client shop/in-houseGetting the first client to join will be the hardest and will require the agency to

be extremely flexible

4 Primary measures for the next 4 months(April-July)How many contacts are touchedHow many meetings with consultantsHow many requests for more informationHow many meetings with prospectsHow many RFP’s/Project requests/Pitches

X $

1 Win

4 RFP’s/Projects/Pitches

25 Warm Leads

100 Contacts Touched

Gauging Success April-July