Leo Burnett Korea chief aims to support companies to go global



McDonald’s Korea launched its coffee brand McCafe in 2009, but sales struggled amid the growing popularity of specialty coffee houses like Starbucks.

For young women working in offices, who led the new trend of sipping a cup of brand coffee, the half-priced McCafe appeared to be not enough to satisfy their appetite for luxury.

Then a television commercial changed the game.

The ad, made by Leo Burnett Korea, featured consumers who participated in a blind test comparing the taste between McCafe and other popular coffee brands.

Many consumers in the ad could not recognize the difference in taste and they seemed puzzled when they found they picked McCafe as their favorite.

The “Make the Smart Choice” campaign was a sensation, changing people’s prejudice about cheaper coffee brands here. McCafe sales also soared.

“There was no celebrity in the commercial. But the honest reaction in there grabbed people’s attention, leading directly to a surge in daily sales,” Cho You-mi, managing director of Leo Burnett Korea, told The Korea Herald.

“In a survey, consumers picked ordinary people, not even bloggers, as their most reliable media. The ‘shopper marketing’ that puts priority on people has always been a key strategy for us.”

The 40-year-old was recently named the new head of the Seoul branch of Chicago-based Leo Burnett Worldwide, part of the Publicist Groupe. Cho is the second Korean and first woman to lead the regional office.

She is also a rare case in the global company, who has taken the top position after climbing up the corporate ladder one rung at a time since she joined the Korean branch in 2002.

Leo Burnett Korea, established in 1991, has continued to build its presence in the local advertising industry. In 2002, another commercial it did for McDonald’s, “In a Bus,” was the first Korean ad to win the Silver Lion at Cannes Advertising Festival.

Along with McDonald’s, its main clients include P&G, Philip Morris, Diageo Korea and Google Korea.

Considering the reputation of Leo Burnett Worldwide, one of the top three advertising agencies in the world, the regional branch is still a small player in Korea. In 2010, Leo Burnett Korea ranked 12th among ad agencies in the country with 95 billion won ($83 million) in volume handled.

The local advertising market is dominated by conglomerates like Samsung and Hyundai Motor. Their in-house agencies make commercials for the groups’ affiliates and other companies.

“It’s a system unique to Korea,” Cho said, admitting difficulties competing with local advertising giants based on huge financial ability.

She, however, believes that there are always opportunities for the company.

“We cannot compete with them when it comes to a fancy commercial featuring a top celebrity. But I’m sure we have more creative, better ideas,” she said.

The company made the 2009 holiday campaign “Dear Hear” for LG Electronics that offered people the opportunity to thank their personal hero by sending a mobile message.

With hundreds of thousands of people participating in the event, the global campaign is still considered the most successful ad for the mobile unit for LG.

Google Korea, even though it doesn’t advertise a lot here, is also an important client for Leo Burnett Korea. It helps the global search giant’s overall marketing strategy in Korea where it is making slow progress.

“We are not just an advertising company but a practical business consultant that helps our clients with their whole marketing strategy,” she said.

Of the company’s total sales, advertising makes up only 40 percent, while others range from product and service development to consumer marketing.

“Ultimately, we want to help Korean companies go global and foreign companies to become strong players in Korea,” she said.

“It seems obvious we will have more Korean clients, given their strong performance in the global stage.”


By Lee Ji-yoon
(jylee@heraldcorp.com)