SEARCHING FOR RIGHT ADVERTISING AGENCY

PRESENTED BY
AJAY PRATAP VERMA 18003
ajaypratap07@gmail.com
DEBASISH GHOSH 18014
KULDEEP TIWARI 18023
 ABOUT THE COMPANY
 The company, originally called Gateway 2000, was
founded in 1985 in an Iowa farmhouse by Ted Waitt.

 It was one of the first widely successful direct sales

PC companies.

 Gateway’s early value proposition was to offer

products directly to the customer, build them to their
specifications, provide them with the best value for
the money, and offer unparalleled service and
support.
 CONTD……
 Gateway uses all of its sales and distribution channels
including its call centers, Gateway.com Web site, and
its nationwide network of retail stores to sell its
products to consumers, businesses, government, and
educational institutions.

 On September 4, 2007 Gateway announced that it had

signed a definitive agreement to sell its professional
business segment to MPC Corporation.
 ACQUISITION
 On October 16, 2007 the acquisition by
Acer became final and Gateway became
a privately held company and a wholly-owned
subsidiary of Acer.

 On July 27, 2008, Gateway ended all direct sales

from Gateway.com and phone orders, It is only
available in major retailers and on other online sites.

 On August 14, 2009, Gateway has relaunched their

brand in Australia after a long absence from
Australia's market.
 COMPETITORS

Gateway competes mainly against -

 Dell
 Hewlett-Packard
 Apple Inc.
 Lenovo
 Sony
 Toshiba
 ADVERTISING
Until 1993, Gateway 2000 relied solely on print
advertising that was produced in house. However, as the
company grew rapidly, it decided to add television ads
to the media mix and to retain the services of an outside
agency to work with its in-house advertising
department. It started shipping its computer hardware in
cow-spotted boxes and for its creative advertising in
Computer Shopper and other magazines.
 DIRECT MARKETING

Over the past 18 years Gateway has been a

technology and direct-marketing pioneer. It was the
first company in the industry to sell computers
online, the first to bundle its own branded internet
service with a PC, and among the first direct
retailers to sell its own branded consumer electronic
products.
INTERNET MARKETING
SEARCHING FOR RIGHT ADVERTISING
AGENCY
 First outside agency was Carmichael Lynch,
Minneapolis who was hired to handle its television
advertising.

 In March 1997, company selected DMB&B agency

because they thought that a global agency that could
help the company with its growing international
business.
The agency’s creative approach was more toward
traditional advertising that used actors and scripted
TV spots.
 CONTD……
 Waitt became dissatisfied with DMB&B’s traditional
campaigns and on March 19, 1998 Gateway fired
DMB&B.

 Then waitt selected another agency, DiMassimo Brand

Advertising, a small creative boutique.
Corra and the new agency produced a number of
unscripted TV commercials for Gateway that were
used for several months.
 THE MCCANN ERICKSON ERA
 Waitt decided to step back from the day-to-day
operations of the company and then hired Jeff Weitzen
as a new CEO and also hired number of high level
executives.

 The new CEO announced the hiring of McCann-

Erickson Worldwide , one of the largest agencies in the
world.

 In April 1998, the company dropped 2000 from its

name, shortening it to Gateway.
 CONTD……
 The company also introduced a new logo featuring a
hand-drawn version of its signature cow-spot box
and it started shipping its computer hardware in cow-
spotted boxes.
 Over the next several years the agency developed so
many campaigns for Gateway promotion.

 In late January 2001, Jeff Weitzen resigned as CEO.

 Waitt resumed control of the company, announced a

net loss of $94.3 in the fourth quarter of 2000 and
Gateway dismissed McCann-Erickson as its agency.
 SILTANEN/KEEHN’S BRIEF TENURE
 The company also began working with yet another
agency, Siltanen / Keehn.

 The new agency began focusing on brand building

for Gateway.

 Ads ranging from humorous spots featuring Ted

Waitt with a talking cow, to stylish product-focused
ads promoting a new line of lap top computers.
 CONTD......
 The company was struggling with weak earnings and
sales and then from , customer tracking research
showed some declines in perceptions of Gateway on
key attributes such as technology leadership and
reliability.

 Again moved its advertising to the Arnell Group,

New York in October 2002.
 EVOLVING THE BRAND
 Arnell’s branding work included the redesigning of
the “cow spot” logo, Gateway Country stores and
integrating a new creative tagline.

 Gateway stores were becoming digital destinations

offering consumers a one-stop shopping experience
for computers as well as other electronic products.
 CONTD......
 Gateway began offering over 150 digital
electronics products including a complete selection
of digital cameras, digital video gear, MP3 players,
printers, software as well as Gateway's own plasma
TV with a 42-inch screen.

 Gateway promised that everything would be better

relative to its competitors, both direct and at retail -
better products, value, service, support and
customer experience.
 LEO BURNETT TAKES OVER
 Gateway announced that it changing agencies for the
third time in 14 months and moving the creative
portion of its account to Chicago-based Leo Burnett.

 In September 2003, Gateway launched its first fully

integrated business-to-business campaign since 2000
with print and TV ads based on the theme
“Humanology.”

 Gateway is hoping that the new campaigns from Leo

Burnett can reverse its declining sales in the stagnant
personal computer industry.
 CONCLUSION

In the process Gateway changed advertising agencies

five times over the past six years and three times in a
14 month period from early 2002 to 2003.

Personal computer, as well as other segments of the

consumer electronics industry, Gateway have
become extremely competitive and having a strong
brand image.