___________________________________________________________________________

IBM
BrandEquityRestorationandAdvertisingEvolution

______________________________________________________________________________
ThiscasewaswrittenbyProfessorMicheleGreenwald,VisitingProfessorofMarketingatHEC
Paris, for use with Advertising and Promotion: An Integrated Marketing Communications
Perspective7theditionbyGeorgeE.BelchandMichaelA.Belch.Itisintendedtobeusedas
thebasisforclassdiscussionratherthantoillustrateeithereffectiveorineffectivehandlingofa
managementsituation.

ThecasewascompiledfrompublishedsourcesandinterviewswithexecutivesatIBM
andOgilvy&Mather.

Introduction
Duringthe1970sand80s,IBMwasoneofthemostsuccessfulcompaniesintheworld. The
company had experienced strong growth in both revenue and profits and had a virtual
strangleholdonthemarketformainframecomputers.Infactthecompanywasoftenreferredtoas
Big Blue, a nickname derived from its massive blue mainframe computers. For four
consecutiveyearsinthe1980s,IBMheldthetopspotinFortunemagazinesannuallistofthe
mostadmiredcompaniesintheUnitedStates.However,by1993thequintessentialBlueChip
companyhadreacheditsnadir.Overthethreepreviousyears,IBMhadlostatotalof$15billion
anditsstockpricewasatan18yearlow.Thebrandhadfallenbelownumber250inInterbrands
annualsurveyofthemostvaluedbrandswithabrandvalue,estimatedatanegative$50million
dollars. The explosive growth of personal computer networks threatened IBMs lucrative
mainframe and minicomputer business and the company was struggling to turn the situation
around.
Inthelate1980sandearly90s,thedriversofinnovationandchangeininformation
technologyweresmaller,nimblecompanieslikeMicrosoft,Compaq,Dell,Oracleandotherswho
offeredlessexpensivesystemsthanIBMthatcouldbasicallyaccomplishthesametasks.IBM
had fallen behind in technology as its top management stubbornly clung to the notion that
traditionalmainframes,whichhadbeenthecompanysprimarystrength,wouldmaintaintheir
dominant positioninthemarketplace.CompoundingtheproblemwasthefactthatIBMhad
becomeabloatedandinefficientbureaucracythathadlosttouchwithitscustomersandhada
riskaverseculturerelativetoitscompetitors.AnimageonthecoverofFortunemagazineinthe
early1990sdepictedIBMasadinosaur.Thesituationhadbecomesoseriousthattheboardof
directors considered breaking up IBM into several companies that would be better able to
competeinemergingtechnologymarkets against the smaller,morenimbleplayersthat were
gaininggroundatIBMsexpense.
InApril1993,LouGerstnerbecamethenewChiefExecutiveOfficer(CEO)ofIBMand
wasgiventhetaskofturningaroundthecompany.GerstnerwasaformerMcKinseyconsultant
whohadbuilthisreputationthroughseniorassignmentsatAmericanExpressandRJRNabisco.

Althoughnotknownasatechnophile,hestartedbyspeakingwithcustomers,largeandsmall,
aroundtheworldtogainanunderstandingoftheirneedsandhowtheyperceivedIBM.Basedon
theirfeedback,GerstnercametotheconclusionthatIBMwasworthmoreinthelongrunasa
whole,ratherthanasdisparatepieces.Heenvisionedathreeleggedcompanythat,withofferings
ofsoftware,hardwareandconsultingservices,couldsynergisticallyleverageitsstrengthstosolve
specificproblemsthatwouldimprovetheircustomersperformanceandbusinessresults.
Gerstner brought on board Abby Kohnstamm who had worked well with him at
AmericanExpress. Together,theymadearadicalmovebyconsolidatingallIBMadvertising
creativeworkworldwidewithoneagencyOglivy&Mather.Priortotheconsolidation,IBMs
advertisingwashandledbyanetworkofapproximately40differentagenciesaroundtheglobe.
However,IBMstopmanagementfeltthecompanywasprojectingtoomanyimageswithits
advertising divided among so many agencies. They decided that by consolidating all of its
advertisingwithoneagency,IBMwouldbeabletopresentasinglebrandidentityaroundthe
world. ChrisWall,worldwidecreativeheadoftheIBMaccountforOgilvy&Mather, noted
that:Itwasamassiveconsolidationjobofaverycomplexbrandinaverycomplexcategory.
ThechallengeforOgilvywastotakeabrandwithheritagefromthepastandbringittothe
present:takingwhatwasgoodandtruthful,andinfusingitwithamodernvoice.Wehave taken
a very complex topic in an environment of constant change, in which the
products evolve but are not quite "new" - products you can't show and often
can't demonstrate.

Our challenge has been to keep the IBM brand fresh,

interesting and topical - because at the end of the day what you're selling is
trust.
The consolidation followed a reorganization and change in IBMs business and
communications strategy that was initiated by Gerstner. Prior to the reorganization, IBM had at its
core 13 semiautonomous business units, each of which could develop its own independent
business strategy with a concomitant marketing communications strategy. These businesses
overlapped and inherent in the mix were potential communications conflicts.

Under Gerstner,

the 13 units were reintegrated into a more cohesive whole. The strategy emphasized the
integration of the units and the key role IBM played in technology around the world, while
reinforcing the heritage of the company. Central to the implementation of the new worldwide
strategy was the global articulation of this vision in a single voice.

SolutionsforaSmallPlanet
ThefirststeptakenbyIBMtoprojectasinglebrandidentityaroundtheworldwasthelaunching
ofanewadvertisingcampaigninJanuary1995withacontemporarytoneknownasSubtitles.
ThegoalofthecampaignwastocommunicatethemessagethatIBMdeliverssolutionsthatare
simpleandpowerfulenoughtomanageinformationanywhere,anytime,andforanyone.The
taglineforthecampaignwasSolutionsforaSmallPlanet.Itoriginatedfromafocusgroupin
Pariswhereaparticipantmadetheobservationthat:Itsasiftechnologyismakingtheworld
smallerandbringingeveryoneclosertogetherbecauseweallsharethesameproblems. The
commercialsdevelopedforthecampaignusedthesameimagerybutwerevariedforeachcountry
bytheuseofsubtitlesinthelocallanguage.
ThecampaigntargetedClevelexecutives,suchasCEOs,CIOs,andCFOs,ratherthan
theprevioustargetaudienceofprocurementandinformationtechnologyexecutives.Thegoalof
the advertising was to convey that IBM was capable of solving business problems, not just
hardwareandsoftwareissues. Thecampaignwaseffectiveincommunicatingthattechnology
affectsevenaveragepeoplearoundtheworldandIBMistherewithsolutionsforsmalleraswell
aslarger,morecomplextechnologyneeds.ThisnewcampaignwasinlinewithLouGerstners
strategic vision for the company which was for IBM to be recognized as a provider of
solutions.ThecampaignalsocommunicatedanimportantmessagethatIBMremainedvigorous,
innovative,andapurveyoroftechnologyandsolutionswhileretainingitslatentstrengthsof
globalscope,leadership,andreliability.SeveraloftheprintadsfromtheSolutionsforaSmall
PlanetcampaignaswellasaphotoboardoftheNunsTVcommercialareshowninthepower
pointfilethataccompaniesthecase.
Whilethe Subtitlescampaign was a step in the right direction, IBM needed togo
further creatively by showing prospective customers that the company was hip to new
technologies,understoodtheirneedsandissues,andhadthesolutionstomakeadifference.Key
todevelopingthiskindofadvertisingwastheneedtobuildacreativegroupthathadadeep
understanding of business and technology issues. In 1997, IBM published a 3,000word
manifestoinTheWallStreetJournal and TheNewYorkTimes,usingcopywritteninbusiness
termsaCEOorCIOwoulduse,ratherthantechheavyterminology. Itillustratedtopotential
customersthatIBMunderstoodtheirbusiness,spoketheirlanguageandhadtheexpertisetohelp
themsolvetheirproblemssotheycouldperformbetter.Thephotographywasverystreetlevel,

providingtheperspectivethatIBMwasoutoftheivorytowerandinthetrenchesworkingwith
itsclientstohelpthemsolvetheirbusinessproblems.

TheEbusinessCampaign
TheSubtitlescampaignhadoneofthemostsuccessfulrunsofanyimageorientedadvertising
campaign ever done by IBM. However, by the late 90s, the Internet was growing as more
companieswereusingittoconductbusinessandIBMwasworkingwiththemtosupporttheir
electronicbusinessprocessessuchasadvertising,merchandising,inventorymanagement,order
fulfillmentandcustomerservice.Thus,IBMdecidedtopositionitselfasthemostcomprehensive
providerofendtoendsolutionsforebusiness.Thisledtotheintroductionoftheebusiness
campaign, which had several subcampaigns to support different pieces of IBMs business.
Theseincludedeculturewhichfocusedonhelpingcompaniesadapttodoingbusinessonthe
web,ebusinesspeoplewhichfocusedonIBMsglobalconsultingservicesandebusiness
toolswhichincludedIBMsproductssuchastheThinkPadpersonalcomputerandservers.The
umbrella campaign recast all IBM communications in relation to doing business online and
helpedthecompanycometoowntheebusinesslabel.
Thecampaignwasgiveacontemporarylookbyproducingtelevisionspotsinblackand
whitewithahorizontal,oblongframethatcreatedascreenwithmovietypedimensions. The
visualwasframedinIBMsbluelogocolor,whichevokedthebrandslongtimeequity,butatthe
sametime,portrayedIBMinafresh,newway. Thespotsweresliceofbusinessscenesin
which business people experienced technology problems that IBM was able to solve. The
commercials were witty and displayed a sense of humor (traits that were not previously
associatedwithIBM),therebyprojectingamuchhipper,withit,andintuneimageontothe
brand.Afemalevoiceoverwasused,whichwasanothersymbolicdeparturefromitsprevious
staidimagery,anddifferentfrommostotherbusinesstechnologyadvertising.Theprintadswere
alsodoneinblackandwhitewithonlythe@appearingincolor(red).
As part of the Ebusiness campaign, IBM utilized testimonials around the theme of
XYZCompanyisanIBMebusiness.Large,wellknownfirmssuchasMercedesBenzand
Motorola,aswellasothersthatweresmallerandlessknown,werefeaturedinthetestimonials.
Apoolofprintads,illustratingthediversityofebusinesscustomers,appearedinmagazines,
wildpostings,outdoorbillboards,andatairports.Thecampaigncommunicatedthemessagethat
IBMworkedwithcompaniesofallsizesacrossawiderangeofindustriesanditsbroadexpertise
made them the most knowledgeable advisers for almost any business. Companies started

approachingIBMaskingtobeincludedinthecampaignasbeingportrayedasanebusiness
enhancedthewaytheywereperceivedbytheircustomers.GreatsynergyaccruedtoIBMfrom
puttingalltheircommunicationsbehindaunifiedandrelevantmessage.Attheendof1998,IBM
didsomethingformerlyunheardofinnewspaperadvertising.Ogilvy&Mathercreateda32page
color insert on heavy stock paper with a compilation of the ebusiness print executions. It
included some surprising new content sprinkled throughout to create interest, a specific
explanationofwhatebusinesswasallabout,andacalltoactionforthoseinterestedinfinding
outmoreaboutIBMsolutionsforebusiness.
Thetimingforthecampaignwasright,asecommerceandallthingsewerestartingto
explode.Moreover,IBMsassociationofebusinesswiththeirbrandinabigwayattheoutset
ofthisexplosionresultedinthecompanypreemptivelyowningtheterm.ChrisWallofOgilvy
&Mathernotedthat:TheeffectofthissimpledecisionwasthatIBMbecameoneofthedefiners
of how the world would talk about internetbased business, and this became a competitive
advantage.Byassociation,IBMbecameknownasbeingattheforefrontofdevelopingideasand
recognizingtechnologytrends:inshort,itbecameabrandthatgotit.Priortothiscampaign,
IBM was constantly in the position of living down their stodgy past, making it harder to
competeagainstMicrosoftandotherhot,youngtechbrands.Butafterebusiness,IBMbecame
one of the leaders of the pack. The crash of the dotcoms made everyone skeptical of 20
somethingchangearchitects. IBMscombinationofsteadfastness,depth,anditsnew,hipper,
morecuttingedge,andmoreinthetrenches,imagehelpedthecompanyonceagainbeviewed
asastalwart,incontrasttosomanyotherflybynighthightechoperations.
Within18monthsofrunningtheebusinesscampaign,theIBMbrandhadturnedthe
cornerandwasonitswaybackup.In1998IBMssalestopped$80billionforthefirsttimeever
andearningswere $6.3billion.EvenmoreimpressivewasthegrowthinIBMsstockprice
whichhadrisenfromalowof$41inthedarkdaysofearly1993tonearly$125bythesummer
of1999.FortunerananothercoverstoryonIBMin1999.However,thistimetheheadlineread
FromDinosaurtoebusinessanimal.
TheONDemandCampaign
TheebusinesscampaignranforseveralyearsandwasfollowedbyONDemand,whichwas
thefirstadvertisingcampaignunderSamuelPalmisano,IBMsnewChiefExecutivewhotook
overtheleadershipofthecompanywhenLouGerstnerretiredin2002.Palmisanosvisionwas
totransformIBMbydramaticallyincreasingitsfocusonthefastgrowingBusinessServices

market.Palmisanoacceleratedtheshiftinfocusfromcomponentvalue(PCsandmachines)to
businessvaluewhichinvolvedprovidingendtoendintegratedsolutions.Thisexpandedvision
ofONDemandbusinesswasbasedontheideaofhowtheworldwouldworkwhenbusinesses
werefullywiredwithbroadband,allsystemswereintegrated,consumershadinfinitechoice,
trendshappenedfaster,companiesprovidedbetterserviceandweremoreresponsivetocustomer
needsandbusinessopportunitiesonaglobalscale.
RichardRyan,ofOgilvy&Mather,notedthat:Atitssimplestlevel,ONisaboutgetting
your company to run better. ON means your company runs like clockwork. Business is
smoother. Lifeisgood. Butpeoplehaveheardallthatbefore,soourfirststepwastocreate
customertestimonialsChinaisON,NapsterisONtoletpeopleknowthatONDemandisreal
andmakingadifferencerightnow.OtherexecutionsFightingcancerisON.FlyingPhonesare
ONspeaktoinnovationandstrategicexpertise.Longcopyexecutionsletusgettothemeatand
potatoesofspecificbusinessissues. ONworksacrossallofIBMsproductdivisions. Itsa
rallyingcryforIBMs300,000employees. ItsthemarketingspearheadforSamPalmisanos
vision. BeingONmeansyoureresponsiveandflexible. Itmeansbeingonyourgame:on
budget,ontrack,onschedule.WewantedpeopletoassociateIBMwiththatnew,ONDemand
wayofdoingbusiness.DeirdreBigley,VicePresident,WorldwideAdvertising&Interactiveat
IBMnotedthatwhileebusinesswasallaboutecommerceandtheInternet,ONDemandwas
allaboutthetechnologyandmovementssuchassupplychainoptimization.
TheredONbuttonusedintheads,combinedwiththewordsDEMANDBUSINESS
becamethebrandsignatureinallmarketingmaterials.Thesloganalsobecametherallyingcry
forallcompanydivisionsthatcrosssellvariousIBMsproductsandservicesinanattemptto
improvetheircustomersbusinessperformance. AllofIBMssalesrepresentativesfromits
serverdivision,tosoftware,tooutsourcingweresellingtheondemandconcept alongwith
theirownproducts.ONDemandstaskwastodrivethedevelopmentofallofIBMssoftware
and hardware, to make them capable of mixing with and managing applications from other
vendors.
Overtime,IBMbegantodefinethemselveslessandlessthroughtheirspecifichardware
and software products, and more as a total business solutions company in which consulting
serviceswasthekeypartofthe3leggedstoolandameanstosellthecompanyshardwareand
software. EbusinesswasallabouttheInternetandbecametoolimitingforIBMasthethey
neededtobroadentheirpositioning.AnIBMexecutivenoted:Businessautomationhasblurred

thecustomarydemarcationbetweenbusinessandinformationtechnology,putITattheheartof
corporatestrategy,andelevatedtheunderstandingofthepossibilities. Asaresult,companies
increasingly look for partners who can skillfully combine business insight with technology
expertise.
IBMpurchasedtheconsultingfirmPriceWaterhouseCoopersin2002toenhancetheir
expertiseinconsultingservices,theircredibility,andtoincreasetheirclientbase. IBMfeltit
wasnowuniquelypositionedtoprovidethecombinationofITandbusinessconsultingexpertise
thatfirmsofnearlyeverysizeandinvirtuallyeveryindustryneedinordertogrowmarketshare
and revenue. They believed that no other firm in the world could deliver better on the
combinationofITandbusinessconsultingtocompaniesallovertheworld. AsWallStreet
analyst,DavidCearleydescribedit:IBMismorphingfromacomputercompanyintoabusiness
expert, selling wellconnected experts. IBM is changing its definition from International
BusinessMachines,tointernationalbusinessmodels.
A major challenge for Ogilvy & Mather in evolving the advertising for IBM was
communicatingtheexpandingscopeofwhattheIBMbrandstandsforandthebreadthofits
business.ThecreativegrouphadbeengiventhetaskofdescribingIBMsofferingsinawaythat
soundsproprietary,butatthesametimewasunderstandable,toaneverlargergroupofbusiness
professionals. WiththeacquisitionofPriceWaterhouseCoopersandtheincreasedfocuson
business services consulting, IBM no longer was targeting primarily IT users. Rather it was
marketingabroadlineofproductsandservicestotopleveldecisionmakersatcompaniesand
organizationsofallsizes.
TheOtherIBMandHelpDeskCampaigns
Since its inception, the name IBM has signified technology.

However as the information

technology consulting industry matured and web services were being built on open standards,
organizations were shifting their definition of business value to include processes and enterprise
optimization. In analyzing this new trend, IBM found itself faced with one of the biggest
opportunities in its history: the $1.2 trillion Business Process Transformation Services (BPTS)
market. Demand for BPTS had escalated as companies increasingly realized the value of teaming
with a strategic partner to help redesign their functions and processes to become more profitable,
efficient and competitive. In 2005, IBM set upon a mission to position itself as the leader of the
BPTS market by increasing awareness of and consideration for its capabilities in this area to
senior business executives. IBM looked to Ogilvy&Mathertodevelopanintegratedmarketing

communicationscampaigntohelpestablishawareness,credibility,andultimatelypreferencefor
IBMasaproviderofbusinessconsultingservices.
AchievingthisobjectivewasnotaneasytaskasitrequiredmaintainingIBMsequityof
superior technology and adding to it an equally strong perception that IBM offers superior
businessconsultingservicesaswell. ChrisWallnotedthatIBMhasastrongheritageasa
technologycompany.Alotofpeopledontrealizetheyalsodobusinessconsultingandnotjust
technology consulting. Thus, a major challenge for the IMC campaign was to get Clevel
executivestorecognizethatthereisanothersidetoIBMthatprovidesbusinesstransformation
services.InApril2005acampaignwaslaunchedusingthetaglineTheOtherIBMwhichwas
designedtopositionthecompanyasaproviderofbusinessconsultingservicesandcommunicate
its expertiseinareas not typicallyassociatedwithIBM. The creative used in the television
commercials for the new campaign used imagery that alternated between scenes of King Arthurs
Knights of the Round Table wrangling with age-old business problems with counterparts at a
contemporary business conference table doing the same. The metaphor of Sir Arthurs Business
Roundtable allowed for real issues to be discussed in a manner that was both informative and
entertaining and to show how IBM Business Consulting could help businesses solve problems in
specific areas. The Other IBM campaign was unveiled during television coverage of the
Masters Golf Tournament on CBS. The Masters was the ideal platform for the launch due to the
large number of senior business executives tuning in for the event. Also, since the Masters only
allowed advertising from three sponsors, IBM was able to deliver its message with high
frequency and without the clutter that typically hinders breakthrough during normal
programming.
TheTVlaunchwasfollowedbyaneightpagemanifestoin TheWallStreetJournal
whichwasusedtosetthepremiseofTheOtherIBManddefineitinthecontextofbusiness
consulting services. Additional print executions were used to elaborate on the King Arthur
metaphoraswellastofocusonspecificareasintheBPTSsuchashumanresources,financeand
accounting, supply chain and procurement, sales and marketing, and strategy and change
management.Alloftheadvertisingdirectedprospects toamicrowebsitewhereuserscould
explorecontentinareas suchas leadershipandinnovation,learnmoreaboutIBMs specific
capabilitiesinfunctionalareas,readcasestudiesandlocateadditionalcontactinformation.
Inadditiontoadvertisingpromoting TheOtherIBM,anotherintegratedcampaign
calledHelpDeskwasrunconcurrentlytoshowhowIBMsondemandcomputingsolvesreal
problemsandtouchesrealpeople. Thefirstphaseoftheintegratedcampaignfocusedonhow

IBMhelpstheworldatlarge,whilethesecondphasefocusedonmoreindustryandcustomer
specificsolutions.TounderscoreIBMsabilitytodelivervalueaddedservicestoacustomer,the
advertisingusedthequickproblemsolutionmetaphorofahelpdeskacrosstelevision,print
andonlineexecutions. Forexample,intheTVspots,thehelpdeskappearsinimprobable
placessuchasagolfcoursewhereagroupofscientistsneedshelpafteritssolarpoweredgolf
cartrunsamokorinthemiddleofabusyfreewaywhereamotorcyclepolicemanstopstolearn
how IBM can assist with traffic control. The print ads featured beautiful photographs of
landscapeswithstylizedhelpdeskstickersattachedtoshowaproblemsolutionscenario.The
online execution used an interactive component featuring a large white room with classical
columnswherevisitorswouldencounteranumberofindustryspecificscenariosforwhichthe
IBMhelpdeskrepresentativedevisedasolution.TheHelpDeskcampaignreceivedaBtoB
BestAwardfrom BtoB magazine,aleadingtradepublication,astheoutstandingintegrated
businesstobusinesscampaignof2005.
TheInnovationThatMattersCampaign
IBMwaspleasedwiththeresultsfromTheOtherIBMandHelpDeskcampaignsasthey
demonstratedthecompanysexpertiseintheareaofBusinessConsultingServicesandgained
credibility for IBM among business executives without negatively impacting its strong
technologyheritage.However,inMarch2006theadvertisingmovedinanewdirectionwiththe
launchoftheInnovationThatMatterscampaignthatisdesignedtopositionIBMasameans
forcompaniestosignificantlychangehowtheydobusinesswhenseekingwaystogrow.The
campaign was developed in response to a major research study IBM had conducted which
showedthatafteryearsofretrenchment,corporationswereembracingchangeandplannedto
radicallytransformthemselvesoverthenextseveralyears.
ThenewcampaignusesthetaglineWhatmakesyouspecial?anditsobjectiveisto
startabusinessconversationand toopenthedoortoexploringhowIBMcanhelpindividual
companiesinnovate,capitalizeontheirinherentstrengthsandredefinetheirbusinessprocessesto
differentiatethemselvesversustheircompetitors. ThevaluepropositionisthatIBMcanhelp
companies innovate by changing their processes and technology. The advertising features
companiesthathavedevelopednewwaysofdoingbusinesswithIBMshelpandhowthishas
given them a competitive advantage. The What makes you special? message also
communicatescustomizationandthatthereisnoonesizefitsallprescription,assolutionsare
basedoneachfirmsuniquecapabilitiesandpossibilities.

ThecreativeusedforthecampaignisverydifferentfrompreviousIBMadsandfrom
otherhightech,businesstobusinessadvertising.Itusesbold,saturatedcolorsandsimpleimages
fromeverydaylife(aradish,apill,acar,ahouse)inatwopageprintspread.Thelayoutshows
anitembyitselfontheleftpageofthespreadandaspecialitemontherightsothatreadersare
drawnintofindoutwhatsspecialaboutit. Ratherthanusinghightechlanguage,thecopy
describesbusinessapplicationsintermsthatarerelativelyeasytounderstand. Thechoiceof
lowercaselettersintheheadlinesandtaglineconveysalackofpretensionandshowsthatIBM
wantstocommunicatethatdiscussionswithclientswillbedowntoearthandnotintimidating.
Aboveall,thecampaignspeakstocustomizingbusinesssolutionsandimprovingprocessesbased
ontheuniquenessofeachindividualfirm.ThemessageisthatwiththecombinationofIBMs
unparalleledconsultingandtechnologyexpertise,customerscanleveragetheircapabilitiesand
strengthstogainacompetitiveadvantageintheirindustries.
IBM launched the new campaign, as they did with others by running a multipage
manifestoinTheWallStreetJournal,theprintmediavehiclewiththehighestreachamongC
levelexecutives.ThenewspaperadvertisingbrokeafewdaysbeforetheTVads,whichbegan
airingthefollowingweekend,andmagazineadsappearedtwotothreeweekslater.Additional
eightpagemanifestoswereruntoallowIBMtoexplainthenewcampaignmorecompletelyand
also provide examples of how their products and services apply to a range of different size
companiesanddifferentindustries.Thetelevisioncommercialsforthenewcampaignincludea
spotcalledAntheminwhichflowerpetalsseemtoinspiregroupsofmenandwomentosing
alongwithanobscuresongbytheKinks,Imnotlikeeverybodyelse,thatspeakstothenew
positioning.Thespotendswithaseriesofquestionsthatappearonthescreeninwhitetypesuch
asWhatmakesyoudifferent?Whatmakesyouunique?Whatmakesyouspecial?Anotherspot
takesafairytaleapproachbyshowingastreamofofficeplantsfleeingcommoditizedcompanies
after realizing that they will only be watered at companies that are growing. In addition to
television and print advertising, the global campaign includes 15 outofhome executions, a
dedicatedwebsite(www.ibm.com/innovation),Internetbanneradsandhugedecalsplacedonthe
tarmacsoftwoManhattanhelipadswhichChrisWalldescribesasmetaphoricalillustrations
designedtotargetcorporatedecisionmakers.Thegoalfortheintegratedcampaignistoconveya
senseofimaginationandpossibilityaswellastocommunicateIBMsabilitytohelpcompanies
dospecialthings.

10

InternetMarketing
Aswithmosthightechmarketersofbusinesstobusinessproductsandservices,theInternetisan
ideal,costeffective,targetedmarketingtoolusedbyIBMtohelpidentifyprospectsandprovide
information about its products and services. IBMs website is designed to move prospects
throughthebuyingcyclefromgeneratingawarenessandinitialinterest,toprovidinginformation
suchascasestudiesandtestimonials,toconvertinginterestintoapurchasedecision.Someofthe
onlinetoolsIBMusesincludewebcasts,podcasts,virtualmeetings,andsendingcustomizede
mails,aswellasecatalogs,andenewsletters. Interestedcustomersoptintoreceiverelevant
information. IBMswebsiteincludesindeptharticles,reportswrittenbytechnologyexperts,
blogsfrompeopleinsideandoutsidethecompanyandpressreleases.Topicscoveredincludethe
rangeofIBMproducts,servicesandbusinessprocessesthatcanbeimprovedortransformed,
such as innovation, growth, operations, customer loyalty, team performance, and corporate
governance.TheproductsandservicesIBMprovidesthatrelatetoeachtopicareelaboratedon
inthesite.Greatcarehasgoneintodevelopingasitethatiseasytonavigatesocustomerscan
focusonareasofinterestorwheretheyaremostlikelytobeseekinghelp.Prospectsanswer
questionsonlinetoprovideIBMssalespeoplewithdataandinformationthatcanbeusedto
addresseachcustomersspecificneeds.IBMsinternetmarketingalsoincludespaidsearchfor
keywords that relate to specific topics and issues of relevance to their customers on search
enginessuchasGoogle,Yahoo!andMSN.IBMalsohasdevelopedwebsitestosupportits
integrated marketing communications campaigns which have included making commercials
availableforviewingbyvisitorstothesiteaswellasrelevantcasestudiesandtestimonials.For
example theweb sitecreated to support the InnovationThat Matters campaign includeda
sectionwherevisitorscouldviewcommercials,aGlobalCEOStudythatcouldbedownloaded,
andareportonIBMsGlobalInnovationOutlook.

MovingForward
The transformation of IBM from a computer hardware company to a services and business
solutionsproviderisoneofthegreatcomebackstoriesinthehistoryofcorporateAmerica.In
2005IBMhadmorethan$91billioninsalesandaprofitofnearly$8billion. Inthe2006
InterbrandStudy,IBMrankedwasrankedasthethirdmostvaluablebrandintheworldwithan
estimatedbrandvalueofover$56billion.CEOPalmisanonotesthatIBMisnotdefendingthe

11

pastanymoreasthecompanyisoffandrunningintoanewworldofbusiness,beyondcomputers.
InJanuary2005IBMannouncedthatwassellingitspersonalcomputerbusiness,bestknownfor
itsThinkPadlaptops,toLenovowhichistheleadingcomputercompanyinChina.Thesaleofits
personalcomputerbusinesswaspartofIBMsstrategytomoveawayfromtheconfinesofthe
slowgrowingandhighlycompetitivecomputerindustryandtocontinuetotransformitselfintoa
companythathelpsotherfirmsruntheirbusinessinareassuchasaccounting,humanresources,
procurementandcustomerservice. Intheprocessofdoingso,however,IBMandOgilvy&
Matherhavesuccessfullybalancedthecompanysbrandheritageasithasundergonechangesin
itsbusinessstrategy.IBMisnotsayinggoodbyetoitsimageasBigBlue.Howevertheimage
ofIBMhasevolvedandthebrandclearlystandsformuchmorethanmainframecomputers.

ExamplesofIBMsadvertisingfromthecampaignsareavailableinthePowerPointfilethat
accompaniesthecase.

12

DiscussionQuestions
1. What is the primary objective of IBMs advertising? How have the objectives of its
advertisingchangedovertheyears?
2. Evaluateeachofthecampaignsdescribedinthecaseandtheaccompanyingadsshowninthe
PowerPointfile. Aretheintendedbrandingmessagesbeingcommunicatedclearlyanddo
theadsspeakequallywelltousers,aswellasnonusers,ofIBMproductsandservices?
3. Whatweretheprosandconsofstayingwiththeebusinesscampaign?Couldithavebeen
updatedandretainedordiditloseitrelevance?
4. HowwastheONDemandcampaignadaptedtokeeptheumbrellataglinewhileproviding
thespecificsneededtocommunicatethesubbusinesscomponentdetails?
5. DoyouthinkIBMsadvertisingcampaignschangedtoooftenoverthepast11years?Were
thechangesmadebecausethecampaignswerenotworkingwellorwasitanintentional
evolutionintheadvertisingandbrandingmessageIBMwantedtocommunicate?
6. IstherevaluetobusinesstobusinessmarketerssuchasIBMinadvertisingthroughmass
mediathatalsoreachthegeneralconsumermarket?EvaluatethemediachoicesusedbyIBM
suchasadvertisingongolftournaments,onSundaymorningnewsshows,inairports,and
evenontheSuperBowl.SinceIBMdivesteditspersonnelcomputerbusiness,shouldthey
continuetoadvertiseinmassmedia,suchasontheSuperBowl?
7. HowhasthetargetaudienceforIBMsproductsandservicesevolvedovertime?Howhave
thetypeofbusinessproblemsthatIBMaddressesintheiradvertisingchanged?
8. What were the advantages and disadvantages of using a creative tactic such as the
metaphoricalKingArthursRoundTablecommercialandprintadsthatwerepartofThe
OtherIBMcampaign?
9. Whatisthevalueofusingtestimonialsorminicasestudiesacrossavarietyofbusinessand
industriesinIBMsintegratedmarketingcommunicationscampaigns?
10. DoesIBMsadvertisingprovideenoughinformationtodecisionmakersanddoesitmatter
thatnoreferencetothepricesofitsproductsand/orservicesaremadeintheads?
11. Evaluate the decision by IBM to consolidate all of its worldwide advertising with the Ogilvy
& Mather agency. What are the pros and cons of using one agency to handle all of its
advertising?

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February2006

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