Investment Bankers to the Marketing Sector

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Creative Workflow Management Bringing Science to
the Art of Brand Execution Jonathan Margulies,
Director August 12, 2009
Research sponsored by
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Winterberry Group Petsky Prunier
LLCMaximizing Shareholder Value of Advertising
Marketing Companies
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Our Mandate Understand the Challenges Facing
Creative Teams Clarify Potential Opportunity for
New Approach to Old Problems

• Identify how branding, product and packaging
  managers are managing creative production
  processesencompassing tools, vendors and
  dedicated processes
• Assess the long-term viability of various
  solutions intended to improve the efficiency and
  effectiveness of the creative workflow process
• Determine whether an independent approach to
  creative workflow management (CWM) has the
  potential to add meaningful long-term value to
  the branding process

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Our Research Methodology Gather Feedback
Directly From End Users
Winterberry Group conducted dozens of surveys
with professionals across the CPG and
pharmaceutical verticals, as well as suppliers
who support their campaigns
Source WG Survey
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Well Address the Following Questions This
Afternoon
Creative Workflow Management

• What business conditions have driven the demand
  for new solutions to manage creative production?
• What is CWM? (And does it truly represent a new
  approach to an old challenge?)
• What does the future hold for creative
  professionalsincluding packaging, branding and
  marketing teams that may be looking to explore
  CWM?

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What Roadblocks Are Confronting Branding
Professionals?
Economic Pressures
Inherent Process Compexities
TechnologicalProliferation
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Panelists Said Process Threats Are Most Serious
(And Costly) of All
To what extent do the following challenges
deplete valuefrom your brand execution efforts?
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Economy The Recession Marches On
Recessionary pressures will drive down total U.S.
advertising and marketing spending by almost 4
in 2009, according to Winterberry Group
estimates in some verticals, the spending drop
will exceed 15, resulting in

• Hiring freezes
• Scaling back or elimination of agency
  relationships
• Trimming of media budgets
• Elimination/delay of new projects
• Vendor consolidation
• Price compression (both hourly and commissions)

Sources Association of National Advertisers
Survey and Agency CEO Survey by Worldwide
Partners Inc, 2009 and Nielsen, 2009
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Headcount Reductions Force Others to Do More With
Less
Taking on smaller clients is the new
normaleverybody has to eat bugs Curt
Doolittle, CEO
Sources RSW//US, GP, 2009, BNET, 2009
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Process Long Production Cycles Delay
Go-to-Market EffortShrink Overall Profit Window
Everything in our business is driven by product
launch dates, and you need to make those
deadlines. You only have a small window of
opportunity for certain types of products IT
Manager, Fortune 500 CPG Company
In the case of new product launches, some
companies put off automation in order to get
products to market sooner. But that often comes
with a high cost in terms of efficiency and time
spent on actual production Consultant and
40-Year Packaging Veteran
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Process Difficult to Maintain Quality Across
Businesses, Geographies and Media
Multiple Products/Lines of Business
To a CMO, the whole process is just organized
chaos. Its getting really problematic,
requiring a significant increase in
sophisticationto manage it all Sr. Executive,
Packaging/DesignServices Provider
Languages Cultural Norms
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Process Regulatory and Brand Compliance Hurdles
Growing More Burdensome
Regulatory
Branding
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Process Inefficient Organizational Structures
Obscure Visibility Into True Performance
A true story.
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Process Inefficient Organizational Structures
Obscure Visibility Into True Performance
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Process Siloed Departments Hinder Development
of Single Creative Vision
ProductDev.
Pkgng.
Other LOBs
BrandMgmt.
IT
Sources Chief Marketer, DM News
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Technology Proliferation of Point and Suite
Solutions Offers Both Help and Headaches
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The End Result Production Inefficiencies Impact
Performance of the Final Product
Re-work, errors, misdirection, missed
requirements, compliance issues, and more
Lost Opportunity Every minute were not in the
marketplace is a sale were not making
Consumer Product Manager
Lost Time If I could cut down the time between
development and market launch to zero, Id do it
Confectionary Brand Manger
Lost Revenue Mistakes lead to a longer product
development time at best, or costly recalls at
worst Brand Consultant
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What is CWM? (And does it truly represent a new
approach to an old challenge?)
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In Short, CWM is a Coordinated Approach to
Creative Production
Launch Production
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The Formal Definition Creative Workflow
Management Is
// The dedicated set of tools and processes
designed to optimize the development and
utilization of creative elements (and associated
data) through the product development cycle //
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The Formal Definition Creative Workflow
Management Is
// The dedicated set of tools and processes
designed to optimize the development and
utilization of creative elements (and associated
data) through the product development cycle //
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The Formal Definition Creative Workflow
Management Is
// The dedicated set of tools and processes
designed to optimize the development and
utilization of creative elements (and associated
data) through the product development cycle //
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The Formal Definition Creative Workflow
Management Is
// The dedicated set of tools and processes
designed to optimize the development and
utilization of creative elements (and associated
data) through the product development cycle //
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If We Consider The Development Product
Development Lifecycle Holistically
Source National institute of Standardsand
Technology
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Then CWM Represents the Critical Stage Devoted
to Product Design, Packaging and Roll-Out to the
Marketplace

• Conception
• Design
• Engineering
• Package Development
• Refinement
• Preparation for Manufacturing
• Launch
• Maintenance Growth

Source National institute of Standardsand
Technology
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Another View CWM Manages Upstream PLM
Functionality
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Bridging the Gap Between Creative Art and
Process Science
Creative
Process

• Workflow automation and management
• Brand and legal compliance review
• Real-time collaboration and mark-up
• File transfer management
• Project tracking and measurement

• Digital/visual asset management
• Color management
• Digital color proofing
• Plus all Process capabilities, including

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CWM Offers An All-in-One Approach to Reduce
Design Costs, Shorten Time-to-Market Cycles and
Improve Quality
Improved Efficiencies
Lessened Supply Chain Stress
CWM
Reduced Design Costs
Shorter Production Cycles
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CWM Offers An All-in-One Approach to Reduce
Design Costs, Shorten Time-to-Market Cycles and
Improve Quality (Contd)
CWM Users What do you consider the greatest
single benefit you have enjoyed from your CWM
platform?

• Ease in editing/approval
• Versatility across businesses/geographies

• Shorter cycle times
• Faster time-to-market

• Fewer errors
• Less rework
• Reduced recall risk

• Reduced headcount
• More efficient resource utilization
• Less rework

• New flexibility to respond to market demand
• Better timeliness

Source WG Survey
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CWM Offers The Opportunity to Improve Process
Efficiency and Eliminate Redundant Systems
HomegrownPlatforms
Costly StandaloneTools Apps
Supplier-ManagedTasks
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CWM Offers Ability to Engender a Range of
Process Improvements Through Definition of
Discrete Workflows
As brands and regulations change, the workflow
changes, so there needs to be a lot of
flexibility and an ability to respond quickly
Pharmaceutical Product Management Consultant
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CWM Facilitates Real-Time Global Collaboration,
Streamlining the Approval Process And Minimizing
Quality Risks
Geographies
With CWM youre able to give clear
responsibilities to individualscutting down on
unnecessary changes, and getting more of the
right people involved upfront Brand
Manager,Global CPG Company
CWM
Product Lines/LoBs
Functional Groups
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CWM Serves as a System of Record Allowing for
Efficient Redeployment of Creative Content

• Single source of the truth allowing for
  centralized cataloging and re-use of creative
  content
• Source of savings on agency feeswhich can
  represent anywhere from 150 to 500 for every
  creative revision (even the comparably minor)
• Helps marketers maintain complete ownership over
  their core corporate assetthe brand

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Case Study Cycle Times Shrink By More Than 20
Times (!) When Printed Proofs Are Eliminated
Before Packaging design process is saddled by
inefficiencies, as legacy processes demand that
artwork is printed and mailed between departments
for each set of approvals. Edits are posted by
hand, and no tracking/reporting mechanism exists
to provide insight into project status
Pharmaceutical Manufacturer (Project Manager)
After CWM Implementation Total package design
and roll-out cycle times decrease by a factor of
more than 20. Managers gain insight into project
status and can now address issues (and intercede
directly) at virtually every step in the design
and approval process
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Case Study Obstacles to Growth Are Eliminated
with New, Scalable CWM Platform
Before Company had long been managing marketing
execution and packaging through manual processes,
and was finding itself unable to grow meaningful
creative capacityi.e. its ability to do more
campaigns, more ofteneven when it added new
incremental staff and resources
Electronics Manufacturer (IT Manager)
After CWM Implementation Definition of discrete,
optimized creative production workflows (and
coordination of those processes with new workflow
management and digital asset tool) allowed for
the effective doubling of creative capacity
without any additional investment in headcount.
Staff development now tied to specific,
identifiable goals
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What does the future hold for creative
professionalsincluding packaging, branding and
marketing teams that may be looking to explore
CWM?
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The Need for CWM Solutions and Tools is Near
Universal
Do you consider CWM solutions necessary for your
business?
CWM has the potential to arrange everything
inside a single system or process. Without it we
would definitely fall behind the competition
Project Manager, CPG Manufacturer
Only small, local companies without a large
manufacturing component can afford to ignore CWM,
and maybe not even then Agency Executive
Source WG Survey
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Next Up for CWM Growth and Refinement of
Platforms to Serve Specific Verticals and
Creative Missions
Vertical Specialization
Expansion Across Branding Functions
Availability in SaaS Platforms
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And Deeper Integration with Other Enterprise
Systems Like ERP, CRM and Marketing Automation
End users What do you consider the most
important selection criteria when selecting a CWM
solution?
Right now it takes five years to buy a
technology and fully integrate it with other
tools IT Manager,CPG Manufacturer
Source WG Survey
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For More Information
Jonathan Margulies(212) 842-6031jonathan_at_winterb
errygroup.com www.winterberrygroup.com
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Creative Workflow Management

Ron Malloy, VP Enterprise Solutions, Eastman Kodak
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Increase Speed to Market, Reduce Costs

• Digital workflow and real-time collaboration
  tools
• Dashboard view of all projects, increasing
  visibility
• Automated, streamlined process reduces production
  complexities, redundancies and errors
• Centralized asset repository streamlines
  localization, regionalization

Marketing
Creative
Legal
Suppliers
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Bring Suppliers into Your Workflow

• Provide agencies with access to centralized
  repository of your approved assets
• Streamline communication and review processes
• Simplify file transfers and delivery
• Remove cost

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Full Execution Support for Marketing Creative
Assets
Direct mail
Approval
Packaginggraphics
Color
YOUR BRAND
POP anddisplay
Audio andvideo
Labeling
Workflow
Compliance
Webcontent
Processes
Modular solutions leverage existing systems
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A Few Customers
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Customer Case Study Facts
Average review cycle from 56 to 6 days
Number of status meetings per project ?45
Amount of rework ?38
Amount of time spent chasing projects, files ?65

• CWM
• Solutions
• reduced

Hard dollar costs from errors and proofing in
year one ?1.2 million
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To Learn MoreWWW.automation.kodak.com

Ron Malloy, VP Enterprise Solutions, Eastman
Kodak Ron.malloy_at_kodak.com Ron.malloy_at_kodak.com
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