Amid the crisis, Brazil becomes Ogilvys hope for 2009
Valor Econômico 02/09/2009
Neither Russia, nor India, not even powerful China: none of the other BRIC countries should give such good news to American Ogilvy in this critical year as Brazil. The publicity, marketing and public relations services network - which belongs to the second largest communications conglomerate of the world, European WPP - is betting its chips in the Brazilian market, the only one among the emerging countries which receives governmental incentives to increase consumption, according to the international President of Ogilvy, Miles Young. The executive, who took office in January, after living 13 years in Hong Kong ahead the Asia and Pacific operation, chose Brazil to start, last week, a trip to the main offices of Ogilvy in the world. Last year, the country surpassed Germany and became the fourth Ogilvy operation in the world, after the United States, England, and China. Cheered up with the increase of nearly 20% in the Brazilian income in 2008, compared to an 11.5% growth in the network all over the world, the executive expects Brazil to grow at least 9% in 2009. Concerning the global level, there are no official estimates for the income of Ogilvy in 2009, but the best forecasts do not exceed 4%. Last month, the company laid off 10% of its team in North America, nearly 120 people, according to Miles. Meanwhile, in Brazil, the income in January increased 14% compared to the same period of 2008 and the CEO in the country, Sergio Amado, studies acquisitions. In June, Amado announced that Ogilvy would have nearly R$ 200 million (US$ 87 million) to invest in acquisitions in Brazil. Buying good companies at a lower price is one of the opportunities the crisis offers, according to Miles. But, in the view of the main officer of Ogilvy, there are other chances to be explored at this moment. For him, everything that is not traditional publicity (ads on TV, magazines, newspapers and radio) tends to become more important. Among Ogilvy's main clients are Coca-Cola, Unilever, Nestlé, IBM, Cisco and Ford. The officer recalls that, even in times of crisis, people need to eat and drink, besides meeting other basic needs. That means the competition not only remains, but it becomes even stronger if the consumer seems to be more thoughtful regarding his/her expenses.