Publicis groupe 2009

INTEGRATED CASE STUDY ANALYSIS OF
PUBLICIS GROUPE 2009:
TOWARD A DIGITAL TRANSFORMATION
BY
UPUL SAMANTILLEKE
|
Presented as part of the requirement for the award of
MBA at Cardiff Metropolitan University (CMU)
|
May 2012

Publicis Groupe 2009: Toward a Digital Transformation
Upul Samantilleke – Cardiff Metropolitan University – Cardiff, Wales UK - 2012 ii
CONTENT
ACKNOWLEDGEMENT IV
EXECUTIVE SUMMARY V
CHAPTER 01 – INTRODUCTION
1.1 ADVERTISING AND COMMUNICATION INDUSTRY OVERVIEW 01
1.2 PUBLICIS GROUPS’ PROFILE 01
1.3 BUSINESS MODEL 02
1.4 MAIN FOCUS AREA – AIMS AND OBJECTIVES 03
1.4.1 PRIMARY OBJECTIVES 03
1.4.2 SECONDARY OBJECTIVES 04
CHAPTER 02 – CASE BRIEF
2.1 CHALLENGES IN THIS INDUSTRY 05
2.2 MAIN ISSUES WITH PUBLICIS GROUP 06
CHAPTER 03 – PROBLEM STATEMENT AND PLAN OF ANALYSIS
3.1 PROBLEM STATEMENT 08
3.2 PLAN OF ANLYSIS 09
3.2.1 SITUATIONAL ANLYSIS 09
3.2.1.1 STRATEGIC MANAGEMENT ANALYSIS – SWOT 09
3.2.1.2 STRATEGIC MANAGEMENT ANALYSIS – ADL MATRIX 10
3.2.1.3 INTERNATIONAL BUSINESS ANALYSIS – PESTLE 11
3.2.1.4 INFORMATION TECHNOLOGY – PORTERS VALUE CHAIN 13
3.2.2 COMPETITIVE ANALYSIS 14
3.2.2.1 MARKETING MIX – 4P’S 14
3.2.2.2 PORTER’S GENERIC STRATEGY 15
3.2.2.3 PORTER’S FIVE FORCES 16
CHAPTER 04 – ANALYSIS AND FINDINGS
4.1 SITUATIONAL ANALYSIS 18
4.1.1 STRATEGIC MANAGEMENT SYSTEMS OF PUBLICIS – SWOT 18
4.1.2 STRATEGIC MANAGEMENT MOVEMENTS - ADL MATRIX 23
4.1.3 INFORMATION SYSTEM – VALUE CHAIN ANALYSIS 24
4.1.4 INTERNATIONAL BUSINESS – PESTLE ANALYSIS 25
4.2 COMPETITIVE ANALYSIS 28
4.2.1 PUBLICIS POSITION – 4P’S 29
4.2.2 VALUE CREATING - PORTER’S GENERIC ANALYSIS 29
4.2.3 MARKET COMPETITION – PORTER’S FIVE FORCES ANALYSIS 30

Upul Samantilleke – Cardiff Metropolitan University – Cardiff, Wales UK - 2012 iii
CHAPTER 05 – RECOMMENDATION AND IMPLEMENTATION
5.1 RECOMMENDATIONS 31
5.2 LIMITATIONS 34
5.3 SCOPE FOR FURTHER ANALYSIS 34
REFERENCES 35
APPENDIX 36

Upul Samantilleke – Cardiff Metropolitan University – Cardiff, Wales UK - 2012 iv
ACKNOWLEDGEMENT
Words can not express my gratitude to Supervisor Dr. Rajendra Kumar, for his professional
advices, encouragements and guidance in my entire writing process and polishing this case
study research analysis. So appreciate his hard work on revision of my case study analysis.

Upul Samantilleke – Cardiff Metropolitan University – Cardiff, Wales UK - 2012 v
EXECUTIVE SUMMARY
This case study analysis aims at understanding the system Publicis, analysing current issues
and find methodologies for applying them followed by the world third communication and
marketing industry. It takes into deliberation of Publicis’ profile and its characteristics in
marketing and communication industry and on what factors that effects its future growth. For
better understanding of its future and futuristic movements, considered and analysed
company’s Information system, its strategic management systems, international business
situation and its marketing management systems. Then the case study analysis moves on to
concrete on the various key factors of success of Publicis and futuristic movements.
Mainly considered SWOT analysis and ADL matrix Publicis’ Strategic management, better
movements for deep understand its past experience and its future growth. The ADL matrix of
Publicis, what it put forwards to its customers including the customer segmentation has been
considered. Then it has been considered value chain mechanism at length and it includes the
methodology used to react to its production methods. The PESTLE analysis used to analyse
thoroughly to find out factors affected to the Publicis when globalising their business. As to
identify its competition and positioning plans, Porter’s five forces and Marketing mix (4P’s)
touched, it is discussed whether the porter’s generic competitive advantage is sustainable or
not for Publicis.
Publicis’ main issue is towards a digital transformation after the digital trend in the world.
after acquisition of Digitas, Publicis starts to think on toward a digital. In 2009, they launched
VivaKi and placed Digitas, Zenith optimedia under its brnad name and strats to move
towards a digital transformation.

Upul Samantilleke – Cardiff Metropolitan University – Cardiff, Wales UK - 2012 1
CHAPTER 1 --- INTRODUCTION
1.1 Advertising and Communication Industry Overview
Brand advertising is the heart of any business success and also communication and
Advertising industry is a typical consumer-driven industry; once consumer, who is the
business keeper in the market, has not answered or not reacted to their communication or
published advertise positively, the customer will not move again with the same advertising
company, that probably the end of whole journey of organization. Also, globalization and
new technologies have allowed consumers to have more across to world market and as a
result consumers are changing, competition is fierce and companies are evolving to meet
these demands. And also cultural effect to the communication and advertising industry is
considerable than any other industry and so that is affecting when running global
communication industry. Also, globalization and latest technologies have released entry
barriers to this industry and it leads to considerable competition among the world to be
surviving inside the industry. Most of the successes advertising industries in the world have
used their full strength with latest technologies to brain wash required customers and it leads
to lead the market. With this situation Publicis Groupe, a France advertising agency, became
one of the largest three advertising agencies in the world, competing with Omnicom and
WPP, those are other largest advertising agencies in the world. (Publicis case, p2)
1.2 Publicis Groupe’s profile
Marcel Bluestein – Blanchet laid foundation for this one of the world largest multinational
Advertising and Communication companies, on 1926 as Advertising company in Paris,
France. Advertising, Marketing, Media Agency and consulting are main businesses of
Publicis Groupe. Publicis is one of the largest three communication industries in the world
with € 526million huge operating profit from 200 offices covering 104 countries with 45000
communication experts. (Publicis case, p21) Main competitors to this organization are
Omnicom and WPP. The company runs media activities in Cinema, Radio, TV, Magazines,
newspapers, outdoor and mobile and interactive online communications as well as direct
marketing and customer relationship management consultancy services.
(www.publicisgroupe.com)

Publicis customers are globally popular famous brands such as Cadbury, Carlsberg, Coca-
Cola, hp, Kellogg, Kraft, Mc Donald Inc., Nike, Renault, L’Oreal, Siemens, LG, Nestle,
Orange, Sara Lee, Wal-Mart, Whirlpool, etc. As consumer products, BMW, General motors,
Fiat, Orange, Philips, Samsung etc as world famous automotive and industries and American
Express, British airways, intercontinental hotel group, GlaxoSmithKline, Walt Disney etc. as
other famous brands. Almost all of Publicis customers are all parts of the world using brands
and most of them are leading to their competitors. (Publicis Case p21)
1.3 Business Model
Advertising and communication industry runs in full of competition and it’s a business in
“red ocean”, as the entry barrier to this market is almost nothing comparing any other
industry. But the competition to the Publicis is considerably low as they are leading the
world’s advertising and communication industry. There should be proper standard
communication system to survive any business in the world, especially for global market;
hence market is broadening for advertising industry as well as competition is fears. Even
they are leading the market they faced 2009 recession and hence they developed new
business model to re-structure the organization named “Feng Shui - the practice of balancing
the element”, basically it is flat horizontal system. (Publicis case p10)
Company’s organizational structure refers the way of people and processes are managed and
it can be vertical or horizontal. Basically vertical management the decision making at the top
but horizontal is more team work. The horizontal systems automatically employers are
motivating due to team work and it support to develop the organization. Publicis is one of the
great an example for a success horizontal business model.
Advertising companies, Media companies and SAMS (Specialized Agencies & Marketing
Systems) are main categories for Publicis Groupe and several profitable subsidiaries are
standing as pillars for giant group.
Its business model covers all three sections mentioned above merged to two axes in
organization structure named technology and talent. Technology covers creative business
movements while talents bring the business. Every employer is a part of success as well as all
has to support to make money as talent or technology group.

1.4 Main Focus area – Aims and Objectives
1.4.1 Primary Objective
Publicis Groupe is a mix of success own cultural companies. It has done several financial
deals to become the leader in communication world. Some deals are completed during worst
economic eras such as BCom3 deal that acquisition was completed just after 9/11 disaster
where economy was started to move downwards to the recession. But the deal makes success
to the Publicis as they became the world fourth largest marketing and communication
industry.
In 2006 Publicis made the largest digital acquisition which is the purchase of Digitas, an
award winning digital marketing and communication interactive agency. Digitas acquisition
made success for Publicis profile as Digitas is the world leading digital creations. When
comparing with other main digital advertisers in the world, digitas is the leading revenue
maker as in 2007 it was $345 millions which is the highest among competitors. (Refer fig
4.1.1.1)
In June 2008, Publicis made its major transformation which is launching VivaKi. With
respecting new industry rules, Respect people, manage the blur, Harness data and Realize
new scale of technology and talent, VivaKi is launched to move across the digital advertising.
(Publicis case, p12). With this up coming digital boom among the world, Publicis should
have to move toward digital to keep the leading position as most of other creative companies
under Publicis are traditional leaders. But the economic situation among the world especially
Europe and America is in very bad condition as still in almost recession economy.
There should be proper platforms to move along with Google, Yahoo!, AOL, Microsoft etc as
those are the main search engines and software that using globally. Publicis target was
develop research and development centre for Digital technology for marketing and
communication world and so they launch VivaKi Nerve centre to achieve their target.
With internet giants such as Google, Yahoo!, AOL etc Publicis has launched VivaKi and
Digitas, ZenithOptimeda placed under VivaKi. It is not a small target but strong ongoing one
as all above online giants are changing applications daily.
Is it effective that the Launching VivaKi in this time for this upcoming digital trend and can
they achieve their target?

1.4.2 Secondary Objectives
Publicis is a giant in brand image promotion world but still they are in third to fourth level
considering global market. Cultural issue is a main factor while conducting International
business, especially communication. Digital information system is another considerable
factor to tackle new generation for branding system. Publicis is one of the giant marketing
consultants in world and they used positively their marketing management systems to
develop their business. Once developed world moving toward a digital technology the most
of the countries which are under develop might not used same technologies and it probably
confuse that market when thinking on same approach. For example, most of south Asian and
some of African countries are not using internet as much as developed world and some of
regions never used internet. And also some regions can find people never see electronic
media for their day today life. But when considering popular brands like coca-cola, Nestle,
etc moved through entire world without considering regions where never used electronics
media and therefore the credit goes to Publicis as they are the people who market those
brands to the world. Another situation is globalized cultural situation which is not similar to
other countries but Publicis moved same product among different cultural regions without
any damaged to the product.
1. What are the Publicis Group’s strategic management decisions and how effectively
supported those decisions to its business development?
2. How group’s Information System supported to face positively in this rapid growth of
digital technology?
3. What are Publicis Group’s international business strategies to make emotional connection
with consumer for branded products to success globally and also to keep valuable global
leaders as customers, such as Coca-Cola, hp, etc?
4. How effective have they been in International market with global cultural changes?
5. How effectively Group does its marketing management system to develop other
industries marketing system?
6. What are the strategic management and international marketing targets for futuristic
positioning plans?

CHAPTER 2 --- CASE BRIEF
2.1 Challenges in this industry
Publicis main profile runs on communicating branding concept which is the most valuable
key or the heart of the business as each and every product or service growth it womb to tomb
only on communication. But technological changes in the world directly hits to this market as
end consumers always changing with latest technologies as well as entry barriers to the
communication world is very low considering any other services. As a result customers are
changing, competition is fierce and companies are evolving to meet these demands. Internet
usage in developed world increased 11% to 62% during 1997 – 2007 and Mobile phone
usage increased 18% to 97% during the same period; such rapid growth changed main
communication media and must have to act against this change. Also internet advertising
revenue was below $1000M and almost $6000M in 2007. Hence impact of digital
technologies is the main challenge to convey the brand concept to the market because moving
toward a digital communication system might made considerable capital which can not be
afforded by some companies in this industry. (Publicis Case, p18)
When considering marketing mix, product, price, place and promotion, the promotion or
Sales and Marketing and Advertising is the most difficult movement in entire marketing mix
of the product. The consumer’s buying behaviour is entirely depends with marketing as some
products can see in the market with high quality and low price but not familiar among the
buyers and hence product never move. For example when Publicis tried to introduce “New
Coke” in 1985 with suing famous actor, Bill Cosby, it fails because of Bill’s introduction and
never marketed, but that is only changing of outer label but they failed and moved to old label
again. (www.growthlink.com).
And also marketing and advertising companies have to develop brand image with considering
respective countries cultural else definitely the product will not move even it is high demand
in home country. For example, advertisers invest millions of dollars to telecast “Big Brother”
in Arab in 2004, but it fails and channel MBC has suspended it due to huge protests and it
effect to whole channel. Hence Advertiser must respect to the cultural situation of respective
country, else it may effect even to other products of same brand. (www.news.bbc.co.uk)

2.2 Main issues with Publicis Groupe
Publicis is a mix of individual independent companies such as Saatchi and Saatchi, Digitas,
VivaKi, BCom3, ZenithOptimedia, etc.
In 2002, after successful acquisition of BCom3 Publicis became fourth largest marketing and
Communication Company in the world. After that global operation had increased 1200 legal
entities within over 80 countries. The transaction was done after 9/11 attack and so Publicis
negotiated the BCom3 purchase as the time moved up for the dreadful economy.
In 2006, Publicis purchased Digitas; the group became best preformed digital communication
industry. The digital world is targeting not only pure dot com customers but also traditional
customers; hence moving toward a digital system is a must. Digitas, an award winning
interactive agency, is the main active subsidiary of Publicis to face these digital systems for
brand image promotions. Major part of digital promotions of Publicis is depending on Digitas
and other companies are doing traditional promotions. That may be an issue when the
communication world completely transforms to the digital world.
With this digital acquisition Publicis developed its digital world. But the company objective
is to build digital revenue 25% from the total by 2010. To achieve this target, Levy, the
chairman and CEO of Publicis Groupe, want to spearhead VivaKi launch as its next
transformation. “Viva” meaning Life and “Ki” meaning Energy flow, and hence VIvaKi
targets to be the Energy flow of Publicis life. With this digital transformations raising around
the world, to face it they need latest technological platforms which supported to the popular
search engines such as Google, yahoo, AOL, Microsoft, Unix, Linux etc.
In 2002 Publicis has taken over BCom3 and became the world fourth leading company in
marketing and communication industry. It leads to complicate the group organization and
also investment for acquisition is very higher but leads to reach to the top.
2008 – 2009 is world difficult time considering recession in USA and Europe market where
their main business regions. During the this recession, customers reduced their branding
promotion cost and that directly effected to this group and searched for ways to survive and
then they decided to changed their business model to face this challenge positively.
Customers of the Publicis Groupe are world wide leaders and market changes of the world,
such as Coca-Cola, hp, Nestle, Carlsberg, etc. Publicis is the reason to lead them in the world,

because they made culturally effective media campaign and made emotional connection with
consumer and build loyal consumers to their customers and made loyal customers to them as
well. Cadbury Gorilla advertisement is one of the most successes brand image improvement
campaign developed by Saatchi and Saatchi under Publicis and that advertisement won 2008
gold lion award. With these talents Publicis moved forward.
Even though Publicis is in high level of the market still they are with red face by considering
future as very low futuristic targets considering Digital raise. Finally, in April 2007, Publicis
organized a P12 committee meeting discussion along with online leaders such as Google,
Yahoo, Microsoft and AOL. This P12 committee contained of all CEOs of Publicis group,
Burnett worldwide, Starcom media west, MSL group, Zenith opti media, Saatchi and Saatchi
and financial and economical leaders in Publicis. At the meeting they launched VivaKi to
handle all digital marketing researches, advertisements, innovations, preparing platforms
collaborating with google, yahoo AOL and Microsoft. Mainly it is the strongest but futuristic
target for Publicis and all subsidiaries with them,
Digitas and Zenith Optimedia placed under VivaKi to move along to face this upcoming
digital trend raise around the world. It is ensure that the customer ideas are simply delivered
to the end customer with efficiently and effectively with respecting new industry rules which
are Respect people, Manage the blur, Harness data and new scale of technology and talents.

CHAPTER 03 --- PROBLEM STATEMENT AND PLAN OF ANALYSIS
3.1 Problem Statement
Publicis started its business in 1926 and until now they have faced severe up and downs in
this industry. The case study mainly focused after 2002 where BCom3 acquisition to until
VivaKi launches. There were severe fails as well as strong leading growth periods with
Publicis. They mainly focused on advertising especially traditional advertising such as
electronics media and other general public communication systems. 1990’s the world slowly
started to move digital systems such as digital mobile advertising, online advertising because
the world moving toward a digital transformation. For example mobile phone usage was
around 11% during late 90s but in 2007 the mobile usage was 97% among the society hence
it shows the effectiveness of mobile advertising nowadays.
To face this digital trend and also to take opportunity to make more market share and to be
lead the world of communication industry, it is must to move toward a digital transformation.
Finally Publicis decided to launch VivaKi to build a digital platform for this digital trend.
Digitas and Zenith optimedia is already there for digital advertising but for better future all
placed under VivaKi and Publicis looks forward.
To find out the effectiveness of Launching VivaKi in this time for this upcoming digital trend
and the way of they target to achieve their goals, are primary objectives of this research.
And also Publicis Group’s strategic management decisions and its effectiveness to support all
those decisions to its business development, is one of the secondary task. On the other hand
Supportiveness of its information technology system to this digital transformation is another
secondary task. All those its transformations are effecting not only to France but also to the
world as they are handling global brands, so Publicis Group’s international business
strategies to make emotional connection with consumer for branded products to success
globally and also to keep valuable global leaders as customers, such as Coca-Cola, hp, etc is
one of the secondary objectives of this research study. When making global moving products
there must be cultural effectiveness to move among all continents. So how effectively they
have been in International market with global cultural changes and the effectiveness of its
marketing management system to develop other industries marketing system, are also
secondary objectives. And to find out its futuristic strategic as well as marketing targets and
future positioning plans are also under secondary objective.

3.2 Plan of Analysis
Analysis mainly contained in two parts such as Situational analysis and Competitive analysis,
to clear all primary and secondary objectives.
3.2.1 Situational Analysis
Company’s situation and its futuristic position could be clear out from situational analysis.
Basically analysing deeply its Strategic management systems, company information systems
and its international business systems would be find out its situation and future position.
3.2.1.1 Strategic Management Analysis
Using SWOT analyses and ADL Matrix, might be find out all strategic management systems
for its ups and downs.
3.2.1.1.1 SWOT Analysis
SWOT is the important and basic internal and external environment analysis in an
organization, it need to analyse when product launch, when market penetration, when product
development or product diversification. It needs to identify all internal factors such as its
strength and weakness of organization and opportunities and threats to the organization as
external factors. And this requirement is very important when market diversification to
complete new country as well as keep market leading position in existing market. SWOT
analysis makes foundation for Publicis Group’s analysis as well as it builds a better
understanding of its current position and futuristic targets of strategic management and also
International business systems.

Fig. 3.2.1.1.1 SWOT Analysis – Illustration for SWOT analysis in Business
Pictured by author Source - Bamford C., West G., (2010)
3.2.1.1.2 ADL matrix
ADL matrix is a portfolio management method that developed by Arthur D. Little during
1970s based on Industrial life cycle. As per this portfolio management systems, each and
every business, product or service, can be described their strengths in five systems as
Dominant position which is the strongest position, Strong position which is not stronger than
dominant, Favourable position that is positive position but depends on situation, Tenable that
is the position more likely to fail and Weak which is negative and it is the weakest position in
the market. All above stages can be defined in any stage of business and that can be used to
forecast its future in any business.
Publicis changes its position for several levels in ADL matrix until 2009 where they
dominantly change to digital from the beginning and analysing its position as per ADL matrix
Strengths
Technological skills
Customer relationships
Management
Leading brands
Weaknesses
Weak brands
Poor Management
Unreliable brands
Opportunities
Advance in technology
Product developments
Distribution Channels
Threats
Tax increases
Recessions
Liquidity
Political changes
INTERNAL
EXTERNAL
TRANSFORM
TRANSFORM

might be supported to that the primary objective which is effectiveness of VivaKi launching
with this time to face to the digital trend.
Fig. 3.2.1.1.2 ADL Matrix
Source – Lynch R, (2006)
3.2.1.2 International Business Analysis
3.2.1.2.1 PESTEL analysis
Launching VivaKi to face to the global digital technology up rise is one of the main
objectives of Publicis in 2009.
PESTLE factors are the main methodology of analysing its external environments factors.
Political, Economical, Social and Technological, Legal and Environmental factors are known
as PESTEL analysis. To start any business or for any type of market penetration, Political
decisions are most important in relevant country and it should analysis before starting and
ongoing. To business made success it needs to analyse Economical factor. Social factor is the
factor which highly supported to the product growth, and so it must analysis. It must analysis
technology before and ongoing else if technologically back, product would sweep from the
market as no movement to the forward as customers are moving with new technology.

Environment factor is same important to do sustainable business development and have to
analysis how affect legal factors important to the conduct business. Not only market
diversification there must a PESTLE analysis should be takes place when market
development even in home country, as political situation may be different when same
company starts in the same country. That might effects to change the laws in legal as well as
technological situation.
PESTLE, an external environmental analysis, will help to find out critical factors affected to
the Publicis Groupe’s movement across the world with different cultures. Unlike other
industries, marketing and communication industries must have to consider thoroughly in
diversified countries PESTLE as advertiser’s movement is the first and last impression of the
product. Publicis won the world in some way and loss some way comparing other
competitors, hence analysing PESTLE can identify critical factors affected to the Publicis
when they globalized their customer’s requirements.
Fig.3.2 PESTEL Analysis
Pictured by the author Source – Grant M., (2005)
Political Forces
Legislative Forces
Environmental Forces Technological Forces
Social Forces
Economic Forces
Organization

3.2.1.3 Information technology Analysis
Information system is the life line of any business and if it fails it might lead to decline the
market share. Information technology is a part of information system and it must be updated
with latest in the world as it creates dominant place in the market and reduce competition
fears. Information technology is directly effects to the final product price and it’s obvious that
no one can beat the product that creates with latest technology. Primary objective is directly
bond with information system as Publicis’ objective of launching VivaKi is to improve the
digital technology which is the latest in communication world.
3.2.1.3.1 Porter’s Generic Value Chain
Understanding its internal and external communicational systems in its supplier chain might
be help to analysis one of secondary objectives, that group’s Information System supported to
face positively in this rapid growth of digital technology, and hence plan to analyse
company’s value chain. Value chain as a term implies a flow of information and incentives
between the people involved. Porter identified there are two activities in an organization
named Primary and Supportive that used to understand the firm’s development of competitive
advantage as well as create share holders value. Value chain described the primary activities
of any system with using internal supporting activities. (Porter, M. 1998)
Inbound Logistics, Operation, out bound Logistics, Sales and Marketing and Service are
Primary activities and Human resources, Infra Structure, Technology, Procurement are
Supportive activities.
Primary Activities – All Value added services that directly involve with final product which
delivering to the consumer
Support Activities - Activities that not directly involve to final product but effectively
supported to increase efficiency of finish good.
Concept of value chain has been extended beyond independent individual industries or firms.
It would be applied to full length of supplier chain and distribution network. The delivery of
process of product and services until end user, the value chain will be described. All the terms
in value chain are value added points to the firm and hence to be analysed.

Value Chain Analysis is one way of illustrating which involvements and movements are best
undertaken by the relevant business and identify which are best. It helps to analyse Publicis
Groupe’s primary activities but their business is entirely different with general production
environment as when considering their advertising business, which is the main business to
them, contains customer requirement and their data as inbound logistics and completed
project as outbound logistics but their marketing and sales should be prior to all activities.
Fig. 3.2.1.3.1 Value chain Analysis
Source - Porter M., 1998
3.2.2 Competitive Analysis
3.2.2.1 Marketing Mix – 4P’s
Marketing mix is the combination of Product, Price, Place and Promotion for any business
venture. Quality of the product and brand image is important to maintain product in the
market. Market situation, economy condition, buyer behaviour etc fluctuates the price in
product but price decide by the management. Place is the important and it make no sense if
the market is not willing to buy or no consumers available. Promotion, Publicis main
business, is the most important element of 4P’s and it makes the brand image to keep in the
market, to upgrade, to penetration, to diversification, etc. However marketing mix is very
important to any product in the market.

Publicis used their marketing mix effectively and efficiently to promote their customers’
products and services, however there are some up and downs with them and 4P’s might be
helped for better understand.
Fig 3.2.2.1 Main elements of Marketing mix.
Pictured by author Source - Kotler P., Amstrong G., (2010)
3.2.2.2 Porter’s Generic strategy
Michael Porter has described Porter’s Generic strategy as three general systems of strategies
which are generally used by the business to achieve competitive advantage. Those three
strategies are low cost leadership, differentiation and segmentation. From those three
strategies Porter identified Low cost leadership and Product differentiation to take the
competitive advantage. Companies generate value either by manufacture their products for a
lower cost than their competitors in the market (low-cost leadership strategy) or making those
goods that customers are willing to pay a premium price for them (differentiation strategy). It
helps to analyse Publicis’ marketing concept to develop their business among customers.
Low-Cost Leadership
This strategy targets a broad market and pushes a firm to sell its products either at low to
average market prices to earn a higher profit than rivals or at lower than average prices in
order to increase market share. This strategy is a key advantage in highly competitive
industries. Cost leaders are well positioned to withstand price wars in the industry.
Product
The features and appearance
of goods and services
Price
How much customers pay for
the product
Place
The point where products are
made available to customers
Promotion
How customers are informed
about products
Marketing Mix

Differentiation
This strategy requires the development of products that offer unique attributes that are highly
valued by customers and demand a price premium. The uniqueness that companies generate
must be difficult to copy if the differentiation strategy is to be successful.
Fig.3.2.2.2 Porter’s Generic Analysis
Source - Porter M., (1998)
3.2.2.3 Porter’s five forces
Fig 3.2.2.3 Porter’s five forces model
Source: Hill W., Jones, R. (2010)

Risk of entry by potential competitors, threats of substitute, Bargaining power of buyers and
suppliers and rivalry among established firms are the five forces that described by Michael
Porter. The forces are effects to any business, when marketing their products or services, and
those combinations of forces directly and indirectly make impact on profits and its market
share. While doing their business very success, substitute producer always can be damaged to
the business as well as its market share and similarly even though the business is in high level
of the market, there is a risk of entry by potential competitors and it might directly or
indirectly forced to the business. They will be damaged not only market share but also human
resource power, technology power, purchasing power etc. Other forces porter describes are
Supplier’s and Buyer’s bargaining power. Those forces directly affect to inbound logistics as
well as out bound logistics and hence it might leads to smash up its market share. (Hill W.,
Jones, R., 2010)
Analysing five forces for Publicis Groupe can be identified its internal and external threats
deeply than threats in SWOT analysis. All above five forces are there with Publicis but they
stand still with owning fourth market share level in marketing and communication industry
but not yet beat top layers and it might because of above forces. Hence analysing five forces
for Publicis is targets to identify its growth effects and other threats.
Porters’ Generic, Marketing mix (4P’s) and Porter’s five forces analysis will be used to
analyse Publicis’ competitive analysis under marketing management and SWOT, PESTLE
and value chain falls to its situational analysis under strategic management, international
business and its information systems.

CHAPTER 04 --- ANALYSIS AND FINDINGS
When Analysing Publicis’ profile and its key characteristics with using theoretical tools
might find issues and factors directly and indirectly effects for its up and downs during past
years. For better understanding and better analysis it has separated into two main sections
which are its Situational Analysis and its Competitive Analysis in their market. Publicis’
strategic management, information system and its international business analysis are falls to
its situational analysis and marketing and competitor analysis falls to its competitive analysis.
Mainly with the situational analysis it will be focused on its current situation in local and
international business and its future. And with market competitive analysis, it could be
supported to develop effectiveness of recommendations that generated at situational analysis.
4.1 Situational Analysis of Publicis
Main target of situational analysis is better and broaden understand of its own capabilities, its
customers and internal/external business environment using its past and present data.
• Its own capabilities and Strategic Management with using SWOT Analysis
• Its own capabilities and Information System with using Supplier Chain
Analysis
• Customers, internal/external environment and International business systems
Analysis with using SWOT, PESTLE and Cultural Analysis
• Finally its strategic management decisions for its up and downs in the market
and its future by using ADL matrix.
4.1.1 Strategic Management system of Publicis – SWOT analysis
Aim of SWOT analysis is to clear out one of the secondary objectives which is; “what are the
Publicis Group’s strategic management decisions and how effectively supported those
decisions to its business development?” and also find some points for primary objective
which is VivaKi Launching decision.
Strengths of Publicis group
Biggest strength of Publicis is their loyal customers and most of them are giants in the world
market. For example Coca-cola is the top rated soft drink brand in the world and their all
competitors are far behind comparatively Coca-cola. During 2007, 34.6% of market share

from beverage sales goes to Coca-Cola products in USA while Pepsi, the main competitor,
takes 16.9% market share. (http://www.sogoodblog.com). Another example is Wal-Mart,
which tops in Fortune Global 500 for both 2010 and 2011 years and almost top in previous
years too. And also Nestle is the most profitable food industry listed in fortune global 500.
(http://www.money.cnn.com)
Such top rated brands are the biggest strength as Publicis build their marketing campaign to
build among the world.
Acquisition of BCom3 in 2002 is another success strategic management decision and it has
developed its market share and it leads to be fourth in the communication industry world.
After this success acquisition, Publicis built their operation over 80 countries with 1200 more
legal entities and therefore the strength of its built to face market leaders.
In 2006, after acquisition of Digitas, a leading interactive agency, Publicis became the world
largest digital advertiser and communicator in the world. (Publicis case, p2). Strategic
management decision of investing for Digital communication industry is a futuristic fast
growth decision that makes to face the digital boom in the world. Hence Digitas acquisition
and digital advertising and communication systems are another major strength with Publicis.
In 1997, total internet usage was 11% in developed world but it increased to the 62% in 2007
and mobile phone usage increased to 97% from 18% in the same period, therefore it shows
the increase of digital technology usage and hence the digital transformation is must for the
future. Therefore Digitas is a considerable strength to the Publicis. (Publicis case, p18) (Refer
Appendix Fig. 6.1) Digitas is global leading digital advertising agency with highest revenue
in the world as well as highest revenue growth considering 2006 and 2007. (Publicis case,
p20)
Another one of considerable strengths of Publicis is web advertising. Publicis built their own
applications separately for global popular search engines such as Yahoo and Google
advertising systems with collaboration Digitas, the digital subsidiary of Publicis. Hence there
are no any mismatches with web applications and advertising quickly moving around the
world.

Fig 4.1.1.1 Digital Advertising agencies total revenue
Graphical illustration by the author – Source: Publicis case (Refer appendix Fig 6.2)
Publicis operates their strength over 104 countries with 45000 communication experts. From
Publicis Groupe advertisement market, 39% is from North American, 30% is from Europe
and 22% is from Asia pacific. (Refer Appendix Fig 6.6)
Fig 4.1.1.2 Publicis Groupe Worldwide Diversity
Graphical illustration by the author – Source: Publicis case
0
50
100
150
200
250
300
350
400
USDMillions
Total Revenue - Digital Advertising Agencies
2006 2007
North America
39%
Europe
30%
Asia Pasific
22%
Africa
4%
Latin America
5%
Publicis Groupe Worldwide Diversity

Weaknesses with them
Publicis Groupe is a mix of several independent individual companies and most of companies
are traditional advertising and only few companies are using digital technology to develop
their creative talents communication system on behalf of customers, such as Digitas. It is a
considerable weakness of Publicis as once those companies willing to separate, the market
position and share of them might be effected.
Opportunities
There is high rapid rise in internet usage and rise of mobile usage among the world especially
developed countries. This is an immense opportunity to this communication industry if they
are really talented with digital online advertising. Early 2000, internet advertising revenue is
around $2000 millions and in end of 2007 it increased to almost $6000 million. There is a
slight revenue back in online business after 9/11 disaster in USA but after the growth became
45 degree straight line towards the top. (Publicis case, p18).(Refer Appendix Fig 6.3)
Therefore investing for digital online business is futuristic investment and it’s a big
opportunity. After acquisition of Digitas, an award winning digital marketing agency, in 2007
for 1.3billion euro, Publicis became the leading online advertiser. So as Publicis is a giant in
online advertising, this online trend is a significant opportunity to Publicis. Popularity of
internet and mobile usage in the world especially in developed world is a significant
opportunity to this industry as most of competitors are not success with digital technology.
69% of total income for Publicis is generating from Europe and Latin America and most of
countries in those continents are fully developed and hence they may use this opportunity.
Most of famous leading brands are with Publicis is another opportunity. With this chance
other main products might move toward Publicis. Most of their advertisements are available
in 10 best advertisements in several years. BMW M3 web commercial became 04th
best
advertisement in the world in 2008, under Times best commercial competition.
(www.uk.askmen.com) and also several years their advertisements, especially web ads, there
in top ten advertisements in the world. This competition winning Publicis strength is a
noteworthy opportunity to draw more customers towards them.

Fig 4.1.1.3 Rise in Internet and Mobile usage in Developed countries.
Source: Publicis case (refer Appendix Fig 6.3)
Threats
Competition is increasing daily as entry barriers to this industry are very low and considering
any other industry; capital investment is also very low. Potential competitors among them are
the most risk for threat to the business. Competition over the online market is a significant
threat. Because of Digitas, Publicis is leading from digital advertising but considering total
revenue Publicis is the fourth in global. So competition threat is significant threat to them as
once growth shows higher degree, potential competitors can be more threat.
Human resources movement is the biggest threat in this industry. Potential competitor can be
hired talent brains where they made considerable creations to their industry and it is such a
big threat as that might leads to move customers too with them. Direct customer deals by the
creative leaders in the organization might be threat to the system as they might be transferred
important data once they move to another company.
0
10
20
30
40
50
60
70
80
90
100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
internet usage Mobile usage

4.1.2 Strategic Management of Publicis - ADL Matrix analysis
After the acquisition of BCom3 in 2002, Publicis became world fourth largest advertising
company. (Publicis case, p1). After this company again become to dominant position when
aging with time, as it leads to increase the legal entities up to 1200 in 80 countries. (Publicis
case, p1). But the time is not the all right as it was just after 9/11 disaster when all the
business move downwards. As a result in 2004, group starts to cost cutting with non value
added items, it results to reduce number of employers. But as with in ADL matrix, the
position still strong but might not be dominant even though Publicis is one of the leaders in
communication and marketing industry.
In December, 2006, Publicis announced that acquisition of Digitas, an interactive digital
communication and advertising industry, to step up for Digital revolution and to convert from
aging position to dominant in growth position. Digitas is the leading digital advertising
industry in the world (refer graph 4.1.1.1) and it lead to move up in the market. After this
acquisition, Publicis starts to think on Digital transformation to improve the market share as
well as to move with latest technology.
Even though Publicis had several acquisitions and lead in the market of communication and
marketing industry, they are fears on their future with this digital trend. Digitas is known as
best fast acting, it means answer to the customer within 48 hours, but still need accelerator.
(Publicis case, p6)
Main objective of introducing VivaKi is accelerating digital movement and move complete
digital transformation of Publicis, as the name means energy flow to the life of Publicis. It
mainly means to make dominant position in ADL matrix when considering position in it.
(Publicis case, p6)
This trend of Publicis is worthwhile but need more improvements as its huge digital trend is
future. VivaKi, the meaning of life energy flow, was launched in 2009 to accelerate this
digital movement even though they are the leading in digital revenue with Digitas creative
agency, as 15% from revenue of Publicis is from digital while others are below 14%. Digital
income percentage of Omnicom is only 13% and WPP is 12% from their total revenue (Refer
fig 4.1.2)

Fig 4.1.2 Digital communication percentage from total revenue in Publicis and competitors
Source: Publicis case, p9
4.1.3 Information Systems Analysis – Value Chain
The target is analysing Value chain and SWOT for its information systems is clear out one of
the secondary objectives, “How group’s Information System supported to face positively in
this rapid growth of digital technology?”
Unlike general production industries, marketing and communication industries can not
available inbound logistics and out bound logistics or no any store locations. Customer orders
are the inbound logistics but physical stock that required maintaining for the operation is
almost zero as it runs totally in human resource creativity and with software. But information
system is the most important factor in the value chain as it depends on correct information
flowing through the entire process.
Fig 4.1.3 5C model of digital advertising value chain
Source: Leppäniemi, M., Karjaluoto, H., and Salo, J. (2004)
0
2
4
6
8
10
12
14
16
Publicis Omnicom Wpp Interpublic
Digital percentage of total revenues in 2007

Publicis group is a mix of several independent individual companies and therefore decision
process is too entirely independent, but the companies have to be demand their final annual
profit to the top of hierarchy. In this case value chain must be analysed separately. When
digital advertisement or communication requirements arise, it passes through companies
where digital expert human resources available, as Digitas.
Most of the digital advertising is depend on creative talented human resources, creative
software and disk storage systems. Hence data security threat can be attacked to the systems.
Malware threat is common risk for information systems. At any occasion without prior
informing, Computer Viruses, Trojans, key loggers and spyware might be attacked to the
information system and it might not only deleting the entire system but also it might changing
required information system or change creations. On the other hand requirements and
information passed on among Publicis Groupe would be changed and it indirectly affect to
the customer requirements. Hence, once they completely depend with information
technology, Publicis has to keep updated backup, however it is a significant threat to the
information system.
As of all communication worlds moving toward a digital technology, Publicis have to move
too and hence they acquired Digitas and now they are the leader in digital advertising world.
In this case, another common threat could be available in digital world are hackers. They can
move towards to the information system and might pass it to the potential competitors.
4.1.4 International Business system – PESTLE analysis
With this international business analysis using PESTLE and SWOT, aim to clear one of the
secondary objectives which is “What are Publicis Group’s international business strategies to
make emotional connection with consumer for branded products to success globally and also
to keep valuable global leaders as customers, such as Coca-Cola, hp, etc?” and also find
points for Primary objective which is situation analysis of VivaKi launching with effect on
PESTLE
PESTEL Analysis is the main important external environmental factor that must consider
before market penetration, market development, acquisition, launching or any other business
movement internationally or locally.

Effects on Political Situation - Political Situation is directly effecting to any industry when
starting international business. It is not much effecting to the European or American market
but directly effect when moving to China, India or other south Asian countries. Indian and
Chinese markets are considerably large and also open and government willing for foreign
investments. But political situation of other south Asian countries and African region is
varying and might effect to the business. Publicis has done several success acquisitions and
reached to the top level of the business. Political situation not effected to them while doing
acquisition as all completed inside developed countries where politically balanced and hence
not effected to them for those acquisitions. And also political factor not affected to their
Launching of VivaKi at that time as it is in 2009 at Paris means no political movements have
to analysis. But when they are doing advertisement campaign on behalf of their customers,
must consider world political situation as well as political situation country wise to access
through out the world. Generally almost all products that they have to publish are global
items and hence political factor analysis is a must. (Publicis case, p10)
Economical Situational Analysis – Most of the times economical condition among African
region, Asian countries even some countries in Europe are changing rapidly like a turbulent
flow and with this economy consumers are simply changing their life style as per economy.
Almost all consumers are always ready to cut down expenditures and moved to low cost
products when economy falls as well as they might be changed their life style when economy
raise and effects to them. Most of the countries in Asian region and African regions are
economic falls countries but not raise much and hence they are daily reducing their buying
behaviour and Publicis as a marketer they have to consider this fact to develop their
customers’ requirement as per the existing economy. VivaKi’s main target is to build new
world for digital communication systems among the world on behalf of their customers
collaborating Digitas and Zenith Optimedia and also conducting digital researches,
applications, etc for their digital business. In this case, they have to have proper idea on
economical situation in all countries. Most of the countries in Europe and North American
are having almost similar economic situation and hence Publicis can be created the same
advertisements for both continents but when considering low economic regions, they can not
afford such a big cost for advertisements as well as consumer’s mind too a different and
therefore it should be different. Hence the advertisement published must be a different as per
the economy. For example some low economy rural areas of south Asian and some African

countries are still not touched latest digital technology and hence it is not effective if the
advert is published on online and so Publicis have to create another for those types of areas
for same advertisement. (www.vivaki.com)
Social factors effects - Social factor is very important as most of the products are depend on
social class. For example Big brother advertisement banned in Middle East as it likely to
cause serious or widespread offensive and people forced to ban as it is against their religion.
(www.oddee.com). Region social and cultural aspects might affect to social behaviour and
hence some of products special for some regions. Social factor is bond with cultural issues in
the country where the product going to be published and hence the cultural issues must be
considered even it is their home country. One of the secondary objectives, “How effective
have they been in International market with global cultural changes?” is derive from this
cultural issues, as they have published customers’ products world wide without considering
cultural limitation such as Coca Cola, Nestle, BMW, etc.
Advertising industry can not be worked with boundaries as the products are global especially
Publicis covered products. In this case culture and its effects must be considered. Some
cultural values are changing country wise and some of them are continental values. For
example some of religion cultural values are same in most of the countries in Middle East.
Technological situation – Another important factor to be discussed is Technological factor
which is act a main role to popular world wide. Publicis used latest technology to publish
their customer’s ad to the public. They plan to launch VivaKi to face this digital trend
because Digitas and other few latest digital technology rich Publicis subsidiaries are not
enough to move toward the future, especially with Google, Yahoo and Microsoft as they are
experts with latest technology. To generate separate platforms to develop ads for Google,
Yahoo, AOL, and Microsoft etc is utmost important futuristic target as most of the customers
are in trouble unless otherwise. In 2007, Razor fish, which is a subsidiary of Microsoft, Rapp
Collins worldwide, which is a subsidiary of Omnicom, Oglivery Interactive which is a
subsidiary of WPP group are earned their global revenue more than $ 200 million but below $
300 million where Digitas, the Publicis’ digital interactive agency has generated $ 345
million in same year, but there is no movement can be if the Publicis can not develop proper
application to move along with main online leaders.(Publicis case p20) (refer graph 4.1.1.1).
But another considerable factor is, European and American technology can not be find within

some of African and Asian countries where Publicis have to develop brand image on behalf
of there customers and hence the same digital advertisement must have to publish in
traditional way too.
Environment effects – With Publicis there is nothing environmental effects could be done as
they are the people only develop brand image for their customers but no any manufacturing
process involved and therefore they are naturally doing only environment friendly activities.
Legal factors are another considerable factor as it controls lot of advertisements and hence
some of businesses not moved due to banned advertisements. It is mainly effects when
moving for international business. For example, one of the popular Brand image develop
advertisements of Diesel, legally banned by the UK because it contained sexual image that
was likely to cause serious or widespread offence and was not suitable publish in magazine
that could be seen by children, but it published in USA. (www.oddee.com)
Digital health published advertisement to stop smoking campaign on behalf of their customer
NHS – National Health Service UK but government banned that before publishing as that
photo might frighten and distress children. (www.oddee.com). Therefore the legal factor must
be considered before investing for advertisement else that cost might be able to not recover.
4.2 Market Competitive Analysis
Main target of Competitive analysis is better and broaden understand of its own capabilities
to face competition and to analyse the position of Publicis comparing its competitors.
Marketing Mix, Porters Generic and Porters five forces are using for this analysis. World
communication industry is moving toward a digital transformation and hence Publicis too
must move toward a digital transformation with proper marketing management.
Objective of this analysis is to obtain more details for the primary objective, “Is it effective
that the Launching VivaKi in this time for this upcoming digital trend and can they achieves
their target?” and broaden analysis of one of the secondary objectives, how effectively Group
does its marketing management system to develop other industries marketing system? What
are the strategic management and international marketing targets for futuristic positioning
plans?
In this competitive analysis Porter’s five forces, Porters Generic and Marketing mix have
been used to illustrate above situations with the global competition.

4.2.1 Publicis position analysis – 4P’s analysis
Price, Place, Promotion and Product are the 4P’s and with Publicis, they made promotions on
behalf of their customers and that made their promotion campaign too. Main challenge is to
build their product to make their promotion too as their products are promotion of their
customers and once the customer made profit from their product, Publicis gain promotion on
it. For example, BMW, Nestle, Coca Cola, hp etc are their customers and most of them are
giants in the world market, hence it made automatically promotion to the Publicis and
nothing to do with separate promotion campaign for them. When making product for
customers, the place should identified by them to make it safe with the culture and other
believes in such area. The same advertisement can find from online to the world but
separately build advertisements to countries to respect their cultural beliefs.
(www.vivaki.com)
Basically the product is Publicis own creation and it is the promotion of them too as once
customer build their market share with the help of Publicis promotion campaign, indirectly
the same propaganda build Publicis market share as every one willing to move toward the
best marketing campaigner.
4.2.2 Value creating – Porters generic analysis
As history built globally popular customer background, the Publicis need not to move with
low cost strategy as they are focusing high popular brands such as Coca Cola, BMW, Nestle,
hp, Carlsberg, etc. Therefore the differentiation strategy is the Publicis used and also their
market campaigns for brand image build are completely different with others. For example
Proctor and Gamble is the biggest investor for their marketing campaign with more than 30%
annual increase from 2007. It is 189million of sterling pounds invested only in UK for 2010
campaign. (www.guardian.com). Proctor and Gamble marketing campaigner is Publicis and
therefore they need not to worry about low cost strategy as their customers are high revenue
makers.
With this differentiation strategy, they need change every time, as to keep customer happy.
Publicis change their system frequently to make growth with the time changes, such as
BCom3 acquisition, Digitas acquisition etc. The latest movement is the launching of VivaKi,
to accelerate the digital communication system. With differentiation strategy VivaKi launch
is the best movement with this time as all other competitors are moving upwards gradually.

4.2.3 Competition – Porter’s five forces analysis
Porter’s five forces are Risk of entry by potential competitors, threats of substitute,
bargaining power of buyers and suppliers and rivalry among established firms.
Generally bargaining among Suppliers and Customers have not make considerable forse with
considering rivalry among potential competitors with up rising digital trend.
Risk of entry by potential competitors is one of major threat to the Publicis. It is not new
entry but uprising of potential competitors as they moved to this new digital trend already
such as Microsoft aQuantive, Google’s double are few examples for digital treand threats
ahead.
In 2007, Google acquired Double Click, Yahoo purchased Right Media, WPP bought 24/7
and Microsoft purchased aQuantive. (Publicis case, p5). With those acquisition series
increased competition to the Publicis as all fights for Digital.
Internet advertising competition is fears but it just started to move upwards, for example,
143.5million people (nearly 82%) viewed to ads displayed at the aQuantive, the digital
communication industry acquired by Microsoft, and 139.8 million people (80%) reached to
ads in Double Click, Google owned digital communication agent in June 2007.
(www.marketingvox.com). It means the competition is up rising and Publicis action to launch
VivaKi is a step for better change in better time as to face the rivalry among potential
competitors such as Google, Yahoo, Apple etc.

CHAPTER 05 --- RECOMMENDATIONS
Recommendation chapter is contained with realistic recommendations with future
implementations for primary and secondary questions, limitations of the research study and
scope for further analysis.
5.1 Recommendations
5.1.1 VivaKi is a better movement to face up rising digital competition
While the economy is weakening, in 2009, communication world’s rapid changes are ahead,
the digital communication already started up rising and several online leaders are starting
such as Google, Yahoo etc. Therefore it is high time to think deeply on Digital movement,
even though Digitas is with them and 15% from total Publicis’ revenue is comes from it,
Publicis group worrying as there should be a proper coordination and acceleration. Hence the
strategic management decision to launch VivaKi for accelerate digital advertising system is
one of the better movement. With existing system if there any misstep taken by single
subsidiary the sister agency relationship with the client could be damaged and also to build
proper trust among clients and company, the VivaKi is a good solution. Publicis mainly target
Digital advertising and their goal is to make 25% of total revenue is from digital for 2010.
(Publicis case, p12). To move toward to this target they need to do several movements where
illustrate in below (5.1.1.1 to 5.1.1.6) and all those are for VivaKi and the recommendations
and answers for Primary and some of secondary problems.
5.1.1.1 More attention need for online advertising market
Considering facts and figures, still Publicis is far behind in online marketing with considering
Google and Microsoft. Even 2006 revenue data says Digitas is the leader for digital
communication, 143.5million people, almost 82% from internet users, reached to ads serve to
the aQuantive, the digital communication industry owned by Microsoft, and 139.8 million
people, almost 80% of internet browsers, reached to ads served by Double Click, the
subsidiary digital communication agent of Google in June 2007. (www.marketingvox.com).
It means more than four out of five people reached to both digital platforms in June 2007
where the Publicis plan to launch VivaKi. Therefore it is high time to take preventive action
to sort out future competition which is already started to up-raise.

5.1.1.2 Smart phone digital advertising is one of the latest and popular systems, but Publicis
never think for it.
Another main uprising digital movement is mobile advertising especially for smart phones
such as Blackberry, iPhone, Android etc. In this case Publicis must advice to VivaKi to build
application software suited for apple, blackberry and Google who are the owners for above
smart phones. Those smart phones are popular among all developed countries in Europe,
America, etc., where higher part of revenue generator for Publicis. (www.iab.net)
5.1.1.3 Another main up rising digital communication system is Media tablet.
Another main uprising communication media is Media Tablets which is rapidly populating
among the world especially developed countries. iPad, Samsun galaxy, Motorola XOOM etc
are main popular tablets among the world. Publicis not touched yet for this industry and even
not discussed it in P12 conference or in VivaKi launching time. Advertising on Media tablets
are another uprising trend. Yet Publicis not made any decision to cover media tablets or smart
phones but just mobile advertising.
5.1.1.4 Build separate software application for all platforms.
VivaKi’s main target is to lead the Publicis to move toward a digital transformation. In this
case they have to build separate application software to collaborate with online platforms
such as Google, Yahoo, AOL and Microsoft.. Once completing platforms of Google, yahoo,
Microsoft and AOL, it covers more than 90% of all internet advertising as they are the
leaders of search engines but making for all others, it is clear that it make all the world as
Google is second in China where one of the biggest online market as Baidu. Chinese
government blocked several functions of Google such as YouTube in Google and it made
Baidu incorporation came upwards in Chinese market and hence digital market place in
China flows on them. Such a way VivaKi must identify the main other search engines where
they need to build separate platforms to move toward a digital transformation.
Smart phones are running in different software platforms such as Apple iPhone is running
under iOS and Google Android phone in Android platform. Therefore Publicis has to advice
to VivaKi to build software to move along with above platforms or Java, brew, etc
applications must build to face this digital trend in smart phones.

5.1.1.5 Face book, twitter, YouTube, and eBay trend
Publicis considered only search engines for digital online advertising but face book, twitter,
eBay, and YouTube are main communication leaders in the world. Most of the companies
now make their profiles in Face Book with regular updates as marketing trend and also Face
book advertisements are most popular among customers in the world especially teenagers
where main focus customers for most of the brands such as Coca Cola, BMW sports, hp,
Apple etc.
Making advertisements for YouTube is another advantage as it builds huge propaganda as
every online trader is using it. Advertisement can be traced on where the most popular videos
by counting the number of viewers of the video.
EBay is another popular auction site where million of customers are glancing daily for day
today item purchasing.
5.1.1.6 Never targets for fashion industry
While analysing Publicis, they have most success, most popular, brand leaders with them but
all are only in few categories such as fast moving consumer goods for example Carlsberg,
coca cola, Nestle, Cadbury etc., IT and automotive products such as hp, BMW, Samsung etc.,
Pharmaceuticals such as Glaxo Smith and Financial services Walt Disney, American Express
etc., but no Fashion industry where the world most movable market other than fast moving
consumer goods.
In P12 discussion about VivaKi, they never mentioned about digital online fashion industry
growth as it is the most success trend in digital world. Customers can use cat walk before
purchasing product online in some of the e-Business fashion leaders. With these high tech
users can touch with using digital improvement hope by the Publicis from VivaKi.
5.1.2 International business has not covered all continents
Most of their products are global and hence they have to publish them around the world, for
example communication campaigner for Coca Cola, BMW, hp, Carlsberb, Nestle etc is
Publicis but those products do not have country boundaries and hence Publicis must have to
go all around the world for better products for clients but they do not install their branches in
some areas such as China, India etc.

5.1.3 Cultural aspects not considered seriously
When Publicis marketing global product, the cultural aspects consideration is a must and
otherwise some countries might reject due to cultural belief threats if they did a wrong and it
might be damage client with the all sister companies. Especially in Midddle East, China,
India are having completely different cultural belief regions among the world and that must
be considered else that can be effect to the client’s product.
5.2 Limitations
One of the main limitations for this Publicis integrated case study is the time duration. All
facts and figures and analysed data were from 2002 until 2009, because this integrated case
study for Publicis is after 9/11 disaster and until the step for digital transformation, that is
2002 – 2009. Therefore some of the recommendation given here might already be
implemented as already 03 years passed and some arguments made here might not be
affected or validated now, as with the time. But this is an advantage as it clearly understands
issues for Publicis in given time frame.
5.3 Scope for the further research
This research study has done only for Publicis group and its subsidiary companies and its
digital movements and also the case study length only till 2009. With this limitations the
analysis might not effective as the company may or may not moved toward this way where
the research path. Hence there must be a further analysis for better understanding problems
that found with this case analysis with using recent movements.

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10. Publicis ads in top ten ads [Available from: www.guardian.co.uk/
media/organgrinder/2010/dec/17/adverts-top-ten-2010]
11. The Reality show suspended in Arab [Available from: www.news.bbc.co.uk/
1/hi/world/middle_east]

APPENDIX
1.
Fig 6.1 Digitas revenue and Company Evolution
Publicis case (2009)
2.
Fig 6.2 Top ten digital advertising agencies

3.
Fig 6.3 Quarterly internet advertising revenue
4.
Fig 6.1 Explosion of media – rise in internet and mobile usage

5.
Fig 6.1 Marketing and communication industry ranking

6.
Fig 6.6 Publicis Groupe operating highlights

Publicis groupe 2009

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