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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. -butWe 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. That‌is about to change.

Going Forward Overall Business Development Objectives Acquire leads Get new clients-setting the stage for future growth Raise awareness and profile of Cheil Build revenue My Goals Focus new business efforts 1. Aggressively increase outbound efforts Identify qualified leads Build outbound contact strategy Reach out to prospects regularly 2. Develop marketing materials 3. Manage RFI/RFP and pitch process

Focusing New Business Efforts Increase Acquisition efforts 1. Aggressively target and reach-out to likely leads. 2. Secure meetings with search consultants. 3. Increase agency use of personal contacts. Develop agency marketing materials 4. 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:

Target groups



Non-Conflicting CE or Tech Prospects 2.

Korean Prospects

New Media



Search Consultants

Employee Referrals 4. Health Care/ Environmental Technology

1. Acquisition- Current Contacts Status Prospects Costa Rican Tourism Cable Website Opportunity VTECH Lojack Garmin Magellan CDW(closed pitch) Search Consultants Roth/Conoco SRI/Catherine Bension AAR/Ann Billock Rojek Pile Joanne Davis Hasan Ramsuvic Brian Martin Michael Keeshan

Awaiting Word End of March/Beginning April Contact via Sela/No go too small/ Email sent/Phone follow-up 2nd call 4/6 Email to be sent 3/31 Email to be sent 3/31 Email to be sent 3/31 Contacted/response sent on to consultant/Follow-up with Rojek (see below) Awaiting next cut decision/Setting up breakfast with Dick Roth Email/filling out SRI 1 Pager/ Finish 4/20(Agency POV) Email/setting up meeting/signing onto their database/Finish 4/6 Email Contact/Enter Cheil info into database/ Finish w/o 3/30 Email Contact with Judy Neer/Consider upgrade of ComPile site listing/CB POV w/o 4/6 Setting up breakfast in mid April Email contact w/o 3/30 (On vacation this week) Emailed 3/25 Emailed 3/25

1. Acquisition- Current Contacts Status Personal List DC Comics

Had initial meeting/Follow-up Mid April

Coriolis Ventures

Had meeting/no further contact for 3 months pending their research

New York Hilton

Trying to set up meeting

RJ Palmer

Meeting w/President w/o 3/30 or 4/6

CMO @ kgb

Breakfast meeting in mid-April

Employee List Need 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 Status Out 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 reel

W/O 4/6

Develop Estimate for reel/ Identify if there are any interactive search consultants

W/O 4/13

Finalized agency positioning. (see section 4)

W/O 4/13

Rough-cut agency reel

W/O 4/20

Beta test agency POV


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 send For 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 business

W/O 3/30

Senior management to develop personal “hit list” to CB

W/O 4/13

Agency personnel sheet completed

W/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

Blackboard visual

Ideas that Work

Idea Agency


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 Perceptions/Strengths:

Immersion Approach,

Competes in fast changing marketplace

High & Advanced

Manufacturer of TVs/Mobiles/CE

Technology Experience Early Adopter Experience Diversified Experience and Staff Retail channel Expertise, Global network

Innovative Agency Position

Cutting Edge Design New Products Technology or Techie

Interactive leadership

Large & Fast growing

New Media Leadership

Asian 窶適orean Early Adopters

4. Marketing Materials-Agency Positioning What needs to be done? 3/30

Review Cheil SWOT with Rick, Jennifer, Timothy, Arun, Marc


New Positioning ideas developed/agreed to


5-6 page “Positioning deck” due


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 Cases 1. 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 versions

W/O 4/20

Finalize case studies

Based on current work load it would appear that I will be writing all of the case studies. Considerations We should consider developing agency “Video-case studies� for site as well as agency reel.

5. Marketing Materials-Case Studies Phase 2 Cases 1. Hankook 2. Experiential marketing group (this is key) 3. Online training 4. Samsung Experience 5. International Capabilities 6. New Media Capabilities 7. Others TBD What needs to be done? W/O 4/20

Begin development of Phase 2

W/O 5/11

Phase 2 cases completed

5. Marketing Materials-Case Studies Phase 3 Cases We 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 breakdown

Agency Clients


Agency Philosophy

Key Strengths

Names & Titles

Organization chart

Employee 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 Status Parts 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/Outreach PR consultant Conferences/Events/Speaker Opportunity Despite economic situation now is the time for Cheil to appear at events • Mirren New Business Conference (Best Practices/Search Consultants) •


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/Tools White Papers – need to develop topics and decide on authors For 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 Forums We need to be continually generating our POV on specialized or specific topics Awards Shows Identify Tier 1 and Tier 2 awards

A little assistance 1. Agency Personnel Experience

Royce is working on this

2. 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 conference and 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 instability Cheil awareness remains low (but building) Still perceived as a 1 client shop/in-house Getting 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 touched How many meetings with consultants How many requests for more information How many meetings with prospects How many RFP’s/Project requests/Pitches

Gauging Success April-July

X$ 1 Win 4 RFP’s/Projects/Pitches 25 Warm Leads 100 Contacts Touched


New Business 90 day plan