Cheil seeks a more global view

SEOUL - Growth beyond Asia and lynchpin client Samsung are top priorities for Cheil Worldwide, says its newly installed global president and chief operating officer Bruce Haines (pictured).

The Englishman, who was previously group CEO of Leo Burnett London, moved to Seoul to spearhead the network’s rejuvenation as a global marketing services agency last month.

“I am the first signal that Cheil wants to compete more aggressively on the global stage,” Haines told Media.

“We have to continue to improve our service and our dedication to Samsung, our largest client.

“But we are effectively an inhouse agency. The more work we can do for non-Samsung clients the better it is for us, and the better it is for Samsung,” he said.

Samsung Electronics is one of a few global clients in Cheil’s care.

Korean tyre manufacturer Hankook and the Korean Tourism Organisation are its two other clients with global ambitions.

But in Haines the agency has secured 35 years’ experience with the likes of Procter & Gamble, McDonald’s and adidas.

“I have been impressed by the ambition of this network, and also its honesty.

People are fully aware of the mountain we have to climb,” added Haines. “There’s a sincere desire to change and to grow.”

The lion’s share of Cheil’s business is domestic, but the agency is under increasing pressure to look overseas for growth.

The network’s first quarter billings in 2008 were up 16 per cent, to 357 billion won (US$359 million).

However the agency’s non-Korean billings grew from 94 billion to 134 billion won last year - a 43 per cent rise.

“We have got to stop calling it a Korean network,” said Haines. “Yes, it’s the biggest single agency in Seoul. But the idea is to transform Cheil into an international network that just so happens to be based here.”

Planned launches in Poland and Turkey later this year will extend the Cheil network to 37 offices globally.

Most overseas growth has come from the Chinese, US and UK operations, largely off the back of new product marketing for Samsung and sports sponsorships such as the Beijing Olympics.

Meanwhile, Cheil has denied that it will be in any way affected by the recent resignation of Samsung chairman Lee Kun-hee, who stepped down following an indictment for tax evasion.

Lee’s departure coincided with the abolishment of Samsung’s strategic planning office, also known as “the control tower”, as part of the conglomerate’s push towards greater accountability.