Gateway: Searching for the Right Advertising Agency Essay Example
Gateway: Searching for the Right Advertising Agency Essay Example

Gateway: Searching for the Right Advertising Agency Essay Example

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  • Pages: 3 (590 words)
  • Published: November 18, 2016
  • Type: Case Study
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Gateway’s decision to change advertising agencies so many times over the past nine years was done because as the company grew they needed an agency that could bring them to that next level and help them identify their branding theme. As each existing agency did its part in helping them reach that goal, they moved to a bigger and better agency. Although they switch numerous times throughout the nine-years, it was only to their benefit to do so. Gateway recognizes that differentiation and brand image are very important in developing and sustaining a competitive advantage.

However, Gateway has struggled to find an advertising theme that resonates with consumers and clearly differentiates the company from competitors such as Dell, Hewlett Packard, Sony, and Apple. In the process Gateway changed advertising agencies five times over the past six ye


ars and three times in a 14-month period from early 2002 to 2003. A week after dismissing DMB&B, the new CEO announced the hiring of McCann-Erickson Worldwide, one of the largest agencies in the world, as it new agency of record.

The company also introduced a new logo featuring a hand-drawn version of its signature cow-spot box. Gateway’s attempt at increasing international sales was with the companies first outside agency Carmichael Lynch, Minneapolis who was hired to handle its television advertising. In addition to Carmichael Lynch, Gateway had retained the services of the London-based Finex agency to handle its European and Japanese creative as the company’s sales in these markets were increasing.

As Gateway 2000 grew rapidly and its international sales increased, the company decided it needed a global agency. In March 1997 the

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company moved its estimated $70 million worldwide account to D’Arcy Masius Benton & Bowles, a global agency that could help the company with its growing international business. Gateway’s frequent agency switching has affected the company’s branding and positioning efforts because there is constant change, thus causing conflict within the company.

Gateway management, in regards to agency switching, did not handle the situations very well, which resulted in more conflict within the objectives of the company. With the constant changes in advertising company management was constantly changing as people let and operations were taken over. The company started seeing loss in their numbers, until they decided to get rid of the quirky people and create an identity for the company.

Branding and positing is very important of any company, it takes some time and handwork to give company brand and position in a market. Many companies create their brand image by using a brand manager, who is responsible for the total management of brand, including: planning, budgeting, sales, and profit performance. Under this system the responsibilities and functions associated with advertising and promotion are transferred to the brand manager, who works closely with an outside advertising agency and other marketing communications specialists.

No, I would advise my account development team not to pursue the companies business because Gateway has switched companies so many times that it would be a loss for my agency to do business with them. Yes they might use my agency for a couple years and that is extra revenue, but the time an effort put into the projects for Gateway and knowing that at anytime they will most likely

hire a new agency does not seem worth it. Who’s to say that by doing business with Gateway, we don’t loose a larger opportunity with a more loyal company who is not going to drop us as their agency in 10 months or less.

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