Сүүлийн үед “Convergence Journalism” гэдэг үгийг монгол хэлэнд хэрхэн оновчтой буулгаж болох талаар нэлээд бодож байна. Сэтгүүл зүйд шинэ нэр томъёо орж ирэх бүр монгол хэлэнд хэрхэн буулгах вэ гэж боддог юм. Ийм нэртэй хичээлийг Миссурийн сэтгүүл зүйн сургууль зааж эхлээд байгаа юм л даа. Сүүлийн 50 жилийн дотор анх удаа шинээр бий болгосон мэргэжлийн чиглэл юм байна. Энэ сайт руу орж сонирхоорой. http://convergence.journalism.missouri.edu/convergence.html Нэгэнт хэвлэл мэдээллийн хэрэгслүүдийг зааглаж байсан хүрээ хязгаар арилж байгаа тул дүрстэй, дуутай, бичвэртэй мэдээллийг цахим технологиор шинэ үеийн хэрэглэгчдэд хүргэх чадвар бүхий мэргэжилтнүүдийг бэлтгэх шаардлага тулгарснаас сэтгүүл зүйн ийм шинэ чиглэл үүсчээ. Багш нарыгаа ч “Convergence professors” хэмээн нэрлэх боллоо. Мэргэжил нэгт зарим хүнтэй энэ талаар санал солилцсон ч олигтой шийдэлд хүрсэнгүй. Зарим сурах бичиг дээр “Convergence” гэдэг үгийг “Нийтшил” гэсэн байна. Тэгэхээр “нийтшилийн сэтгүүл зүй” гэж болох л юм. Харин “нийтшилийн багш” гэвэл ямар сонсогдож байна? Анх 1990-ээд Хэвлэлийн Хүрээлэнд орчин цагийн сэтгүүл зүйн хичээл зааж эхлэхэд “lead” гэдэг үгийг “ЭХЛЭЛ”, “ТОЛГОЙ” гэж орчуулж үзээд сүүлд нь “ЛИЙД” гэж бичиж, дуудаж хэрэглэсэнсэн. “Мэдээний лийд” гэж хэлэхээр суралцагчид шинэ зүйл мэдэж авч байна гэж илүү ойлгоод байсан юм л даа.
А.Оюунгэрэл
2009 оны 3 дугаар сарын 18
Wednesday, March 18, 2009
Sunday, March 15, 2009
Хөрш гурван орон дахь тамхины сурталчилгааны талаарх судалгаа
Энэ удаа "Олон улсын зар сурталчилгаа" хичээл дээр хийсэн Монгол, Орос, Хятад гурван хөрш орны тамхины үйлдвэрлэл, борлуулалттай холбоотой нэгэн судалгааг танилцуулъя.
Оюунгэрэл
Tobacco industry and ads regulation in three neighboring countries: Mongolia, China, and Russia
Introduction
The economic relationship of three neighboring countries: Mongolia, China and Russia play a vital role in Asia. Although Russia is belonged to Europe, the most of its territory is in Asia. Historically, those countries have long term trade relationship, particularly in tobacco importing and exporting. “Asia consumes half of the world’s tobacco. However, cigarette sales revenue is relatively low, since most cigarettes sold in Asia are inexpensive products”, reported the Financial Times in October 6, 2000.
With 350 million smokers, China is the world’s largest tobacco market. Few countries have attracted so much tobacco investment in such a short time as Russia has. The Russian cigarettes market is the largest in Europe and fourth largest in the world. Unlike the situation in most other markets, consumption in Russia is still growing, by 1.5 to 3 per cent per year. There are between 35 million and 40 million smokers in Russia, and no restrictions on tobacco consumption. However, Mongolia is a consumer of tobacco products not a producer.
Tobacco industry
Mongolia
No tobacco is grown in Mongolia. Mongolia imports tobacco from Russian Federation, Bulgaria, and China. A small quantity of cigarettes is imported from the U.S.A. Dry snuff tobacco is imported from China. In total, 620 million cigarettes which are 0.2 percent of global imports are imported annually. Because all tobacco and tobacco products are imported into Mongolia, employment generated by the tobacco industry is minimal. Utilizing available data, it was estimated that from 1980 to 1989, annual per capita consumption remained stable at around 560 cigarettes per adult aged 15 and above.
China
The state-owned China Tobacco Corporation, the largest tobacco producer in the world, currently dominates in the Chihese market. The corporation’s market value is estimated at 24.5 billion dollars and it posted 11 billion in sales revenue in 1999. Cigarettes made by China Tobacco Corporation account for 92 percent of China’s consumption, a full one third of the global total. In the first half of 2000, Chinese companies produced 16.4 million cartons of cigarettes. This was 462,000 cartons more than in the same period of previous year and constituted 2.9 percent increase. China is interested in U.S grown tobacco.
Russia
Approximately, 320 thousand million cigarettes are manufactured or imported into in Russia every year. Cigarette production and imports increased by 40% 215 thousand million in 1986. There are several reasons which have been assiociated with this dramatic increase:
· Tobacco rationing in early 1990-s
· Psychological distress on the Russian people
· Attraction of the Western style
· Lack of legislation regulating tobacco advertisng
· Easy access to cheap, low quality tobacco products
· Lack of financial resources in rublic health sector
· Absence on effective system for quality control of tobacco
There were 26 factories factories in 1995 making 140 thousand million a uniquely Russian smoking product. Now the Russian Finance Ministry registered 86 factories. Of those, around 60 are sizable plants, and 30 major factories make the best-selling brands. Twenty factories are associated to Tabakprom, the largest tobacco company in Russian, and ten factories are joint-ventures with foreign companies. Around 95 percent of all legel cigarattes sold in Russia were made locally in 2000. Today, Russia is importing about 150 thousand million cigarettes. The sales of American made cigarettes increased in volume by 36% and in price 57%. So far, a total of 2 billion dollars were invested in the Russian tobacco industry since 1990 and 75 percent of the money came from foreign companies.
Tobacco related issues
Tax
Tobacco’s only apparent economic attractiveness for Mongolia lies in its excise-generating ability for government. A very high percentage of the cost of cigarettes goes toward government revenue. Tobacco taxes now constitute 84-95% of the cost of cigarettes. Previously, tobacco had only been taxed for fiscal and not for health reasons.
Tobacco is a major source of revenue for the Russian government as well. Cigarette tax revenue is equivalent to 8 per cent of the government budget. In 1999, Russia’s tobacco tax collections totaled 6 billion rubles, up from 4 billion rubles in 1998. However, Russia’s tobacco taxes are among the world’s lowest, representing only 5 to 7 percent. In addition, tobacco industry gives direct employment to thousands of workers in both countries Russia and China.
Tobacco taxes in some countries
Country Percentage of retail price
Mongolia 87.5
Great Britain 79.6
Germany 73.0
Japan 63.0
United States 39.5
China 38.0
Russia 3.3
Prevalence
According to the 1991 survey, conducted around 9,000 persons of Mongolia, about 40% of adult males and 7% of adult females smoked. The age distribution of smokers was:
· 2.8% were below 18 years,
· 37.5% between 19-29,
· 30.2% between 30-40,
· 19.9% between 41-50, and
· 9.5% aged 51 and over.
In Russia, about two-thirds of men and one third of women smoke. Smoking rates among adolescents are increasing, especially among girls. Russian youth is especially attracted to images of old American movies, and TV programs and they perceive smoking as “fashionable”, or “high class”.
Smoking habit
In Mongolia, 19% smoked non-filter cigarettes; 14,7% smoked hand-rolled cigarettes (mostly workers), and 24.6%, including pipe tobacco (mainly farmers) and role-your-owns (15%). Nasal shuff was used primarily by elderly males and chewing tobacco was consumed only in the western region of the country in 1991. Smokers smoked on average 11 cigarettes per day.
According to the Journal of American Medical Association, more than 300 million men and 20 million women smoke in China. Only 6% of women currently smoke. The perception ofcigarettes as both fashionable and weight-control aid, could lead to an explosion of smoking rates among women. While in the most countries, smokers tend to stay loyal to one brand, Russian smokers often try a whole array of cigarettes before setting on one brand.
Tobacco related illnesses
Between 25% and 30% of heart diseases and cancers are caused by smoking in Russia. Tobacco causes 32% of all male deaths and 5% of all female deaths.
An official study conducted 48 major cities found that more than 82 percent of consumers know that smoking hams health. But one third of Chinese people did not know what are particular dangers caused by smoking. General Zhang Chaoyang, secretary of China Consumers Association announced on March 15, 2001 at the press conference, “Despite fancy tobacco advertisements and promotional campaigns, more and more Chinese consumers have realized that few puffs on cigarettes every day may take a huge toll on their health and set about ti change the unhealthy habit.”
Smuggling
Smuggling exists in all of the three countries. Widespread smuggling exists in Mongolia. In result of establishment open trade with China since 1990, the Mongolian people have experimented many counterfeit goods including tobacco. Independent retailers of small companies import fake cigarettes from China.
This problem is transcended to other countries rather than these three neighboring countries. The U.K. government employed more custom officials, put large container scanners and added stiffer sentences in order to investigate tobacco smuggling. Investigators found packets shipped to Britain from China. Criminal gangs are forging bixes in the colors of established brands such as Marlboro and filling them with cheaper cigarettes. Chihese authorities broke up 2,427 underground cigarette factories in 1999. This year 60 million cartons of illegal cigarettes valued at 700 million yaun ($84 million) were confiscated. Alomost 300 illegal cigarette markets throughout the country have been shut down.
Because of the lack of quality control over tobacco products and unprecedented smuggling, Russia was flooded with cheap cigarettes of dubious quality, with small or no health warnings at all. Contraband and counterfeit goods make up around 4 to 5 percent of the total market.
On the streets, elderly people mostly women sell packs of cigarettes to anyone with the cash no matter how young.
Tobacco regulation and advertising
Mongolia
Ary Assuma, a coordinator of several major health campaigns in Malaysia pointed out at the symposium on tobacco control in Geneva IN 1999 that Thailand and Mongolia have comprehensive tobacco-control programs in contrast to other Asian countries. The Ministry Health and Social Services first addressed tobacco control in 1984 with directives concerning smoke-free premises. Since 1988, there has been a ban on cigarette sales to children under the age of 16. In 1990 and 1991, the Ministry Health invited a WHO Consultant to advise on national tobacco control policy and legislation. In March 1994, comperensive legislation came into affect. However, implementation and endorcement of the law are proving to be problematic.
Since 1994 health warnings are required on cigarette packets (6 warnings have been to introduced), and tar and nicotine upper limits have been regulated. There are bans on direct advertising and sponsorship. Despite this ban, RJR promoted the Camel Trophy’ 97 jeep adventure tour in Mongolia. Radio, television, cinema and print media have been used to broadcast anti-smoking messages. Many of the health messages are on the economic impact of smoking (including reduced productivity), as well as on the risk of fores. Sports personalities are shown to emphasize a positive, healthy lifestyle. The Methodological Center on Anti-Alcoholic and Anti-Smoking Activities runs smoking cessation classes and established a Quitters Club in 1987. Implementation and endorcement of legislated tobacco control measures is not always possible.
Smoking was first prohibited on public transport and in health facilities, as well as many other worksites, including electricity stations, Army clinics, and at the Institute of Agriculture. That ban has been extended to prohibit in many public places, transport vehicles, offices, and schools.
China
The State Council is requiring of “reducing the nation’s tobacco stocks by 20 million dan (100 million kg/220 million lbs.) within three years starting from 2000. The government also plans to help big and meium-sized companies in the tobacco industry to reduce their total losses to around 15%, so the industry as a whole can stop incurring losses. To do this, the government aims to reduce its tobacco inventories to 1 million tons within three years.
As Jara Parker-Pope, state owned monopolies don’t have a need to advertise because they are the only game in the area. The Beijing Government jealiously guards its monopoly, relying on cigarette sales for 12 percent of its annual revenue (p.48). here are more than 900 brands. And some joint ventures and licencing agreements with Western companies are sponsoring countless radio shows and sporting events. Brand namews like Marlboro and Salem are on the café umbrellas.
The State Administration for Entry-Exit Inspection and Quarantine is responsible for testing and certification of tobacco goods along with other products. Pricing departments across the country will carry out eight price-relted inspections in areas including electricity, public security, tourism, housing and real state management, car purchases, education, agriculture, garin, and tobacco.
According to the Times of India, “Though tobacco advertising in developing countries is at present directed towards the general public, attempts are being made in China, Sri Lanka and the Philippines to target women (January 10, 2000)”.
Russia
The country did not have reliable, independent control of tobacco products before. Currently there are three laboratories that provide such control: the Laboratory of the Russian Research Institute of Tobacco and Makhorka in the city of Krasnodar; the Laboratory of the Oncological Research Center in Moscow; and the Laboratory for Tobacco Quality Control in Moscow. Russian market is improving value of cigarettes and making them cheaper while lowering tar and nicotine. Currently, only 49 percent of Russia’s tobacco factories have technical ability to meet requirement for nicotine limits.
Increased number of tobacco led to the massive amounts of tobacco advertising. American tobacco companies heavily advertise in Russia using American symbols such as billboards with the Marlboro Man.
Anti-tobacco video on TV during the daytime when most people are at work or at school. In contrast, a tobacco company has recently provided the bulk of 150,000 dollars spent on just one advertising festival in Moscow.
Adevertisement on local products appeals to Russian patriotism. Its pack depicts the battle at Sevastoplo and Borodino-glorious pages in Russian history. The motto is no less patriotic: “Changing the aims, we remain faithful to her.”
Irina Kazovskaya, PR representative of Eurotabak said “With advertisements you can persuade people to smoke even not-so-good cigarettes”(July, 2000). Indeed no product is so fiercely advertised in Moscow as cigarettes. Huge posters and billboards appeal to experimenting Russian smoker: “The night is yours-turn up the fire,” whispers Pall Mall; “Bet on the winner.” Boldly advises West1; “Is really possible to refuse yourself?”, tempts a Winston.
According to the Article 16 of the Advertising law, there are some limits on tobacco advertisement. It says, advertisements for alcoholic drinks, tobacco and tobacco products disseminated by any method must not:
· Be disseminated on radio or television prorams between 7 a.m. and 10 p.m. local time;
· Be disseminated in any form on radio or television programs, cinema or video services or printed publications for minors;
· Be disseminated on the first or last pages or a newspaper or on the first or last pages of covers or a magazine;
· Be disseminated at children’s, scholastic, medical, sporting or cultural organizations, or within 100 meters of them.
In addition, the law prohibits to demonstrate process of smoking and to use image of popular among youth person in ads. As law says all tobacco products must be accompanied by warning on dangers of smoking.
Summary
Tobacco brings much money to the government budget in three neighboring countries in Mongolia, China and Russia. Mongolia has more restrictive regulation banning all kinds of tobacco advertising. In contrast, China has almost no banning on tobacco advertisement because the largest tobacco corporation is owned by the State. Russia’s advertising law is weak. It aims mostly on children. In reality, the most ads are targeted to women. Cigarette companies have portryed smoking as a “torch of freedom”, “a tool of beauty” and a sign of progress.
In general, Russia is becoming increasingly lucrative market for cigarette manufacturers from Western Europe and the United States. Newly built cigarette factories in Russia are results of the tobacco industry’s response to legal setbacks in the West. Those factories have been touted as an economic benefit, not a risk to that nation’s health.
China is succeeding in increasing both its production and sales of tobacco, while also decreasing its stocks of its product.
The marketing and advertising pressure from the tobacco companies that the U.S. experienced in the 40’s, 50’s and 60’s is now happenning in the developing countries. China and Thailand had taken steps to raise cigarette taxes.
Lured by financial gains, the tobacco industries is growing in both countries: Russia and China. Those countries’ policies will not be as effective unless transnational tobacco firms are made to limit their aggressive advertisements.
As long as cigarette makers produce cigarettes, they will sell them, consumers will buy them, and people continue to smoke. And if people keep smoking, the cigarette makers will continue to make money. It is paradox that their governments encourage their production and at the same time they want to regulate everything: production, price, sales and advertising. If the governments have interest to gain money for the budget as taxes from cigarattes, this circle will continue.
References:
Albarran, A. & Chan-Olmsted, S (1998). Global Media Economics. Iowa University Press.
Parker-Pope, J. (2001). Cigarettes. The New Press.
http://www.cdc.gov/tobacco/who/mongolia.html
http://www.chinaonline.com/
http://web.lexis-nexis.com/.lexis-nexis.com
2001 оны 5 дугаар сарын 9
Оюунгэрэл
Tobacco industry and ads regulation in three neighboring countries: Mongolia, China, and Russia
Introduction
The economic relationship of three neighboring countries: Mongolia, China and Russia play a vital role in Asia. Although Russia is belonged to Europe, the most of its territory is in Asia. Historically, those countries have long term trade relationship, particularly in tobacco importing and exporting. “Asia consumes half of the world’s tobacco. However, cigarette sales revenue is relatively low, since most cigarettes sold in Asia are inexpensive products”, reported the Financial Times in October 6, 2000.
With 350 million smokers, China is the world’s largest tobacco market. Few countries have attracted so much tobacco investment in such a short time as Russia has. The Russian cigarettes market is the largest in Europe and fourth largest in the world. Unlike the situation in most other markets, consumption in Russia is still growing, by 1.5 to 3 per cent per year. There are between 35 million and 40 million smokers in Russia, and no restrictions on tobacco consumption. However, Mongolia is a consumer of tobacco products not a producer.
Tobacco industry
Mongolia
No tobacco is grown in Mongolia. Mongolia imports tobacco from Russian Federation, Bulgaria, and China. A small quantity of cigarettes is imported from the U.S.A. Dry snuff tobacco is imported from China. In total, 620 million cigarettes which are 0.2 percent of global imports are imported annually. Because all tobacco and tobacco products are imported into Mongolia, employment generated by the tobacco industry is minimal. Utilizing available data, it was estimated that from 1980 to 1989, annual per capita consumption remained stable at around 560 cigarettes per adult aged 15 and above.
China
The state-owned China Tobacco Corporation, the largest tobacco producer in the world, currently dominates in the Chihese market. The corporation’s market value is estimated at 24.5 billion dollars and it posted 11 billion in sales revenue in 1999. Cigarettes made by China Tobacco Corporation account for 92 percent of China’s consumption, a full one third of the global total. In the first half of 2000, Chinese companies produced 16.4 million cartons of cigarettes. This was 462,000 cartons more than in the same period of previous year and constituted 2.9 percent increase. China is interested in U.S grown tobacco.
Russia
Approximately, 320 thousand million cigarettes are manufactured or imported into in Russia every year. Cigarette production and imports increased by 40% 215 thousand million in 1986. There are several reasons which have been assiociated with this dramatic increase:
· Tobacco rationing in early 1990-s
· Psychological distress on the Russian people
· Attraction of the Western style
· Lack of legislation regulating tobacco advertisng
· Easy access to cheap, low quality tobacco products
· Lack of financial resources in rublic health sector
· Absence on effective system for quality control of tobacco
There were 26 factories factories in 1995 making 140 thousand million a uniquely Russian smoking product. Now the Russian Finance Ministry registered 86 factories. Of those, around 60 are sizable plants, and 30 major factories make the best-selling brands. Twenty factories are associated to Tabakprom, the largest tobacco company in Russian, and ten factories are joint-ventures with foreign companies. Around 95 percent of all legel cigarattes sold in Russia were made locally in 2000. Today, Russia is importing about 150 thousand million cigarettes. The sales of American made cigarettes increased in volume by 36% and in price 57%. So far, a total of 2 billion dollars were invested in the Russian tobacco industry since 1990 and 75 percent of the money came from foreign companies.
Tobacco related issues
Tax
Tobacco’s only apparent economic attractiveness for Mongolia lies in its excise-generating ability for government. A very high percentage of the cost of cigarettes goes toward government revenue. Tobacco taxes now constitute 84-95% of the cost of cigarettes. Previously, tobacco had only been taxed for fiscal and not for health reasons.
Tobacco is a major source of revenue for the Russian government as well. Cigarette tax revenue is equivalent to 8 per cent of the government budget. In 1999, Russia’s tobacco tax collections totaled 6 billion rubles, up from 4 billion rubles in 1998. However, Russia’s tobacco taxes are among the world’s lowest, representing only 5 to 7 percent. In addition, tobacco industry gives direct employment to thousands of workers in both countries Russia and China.
Tobacco taxes in some countries
Country Percentage of retail price
Mongolia 87.5
Great Britain 79.6
Germany 73.0
Japan 63.0
United States 39.5
China 38.0
Russia 3.3
Prevalence
According to the 1991 survey, conducted around 9,000 persons of Mongolia, about 40% of adult males and 7% of adult females smoked. The age distribution of smokers was:
· 2.8% were below 18 years,
· 37.5% between 19-29,
· 30.2% between 30-40,
· 19.9% between 41-50, and
· 9.5% aged 51 and over.
In Russia, about two-thirds of men and one third of women smoke. Smoking rates among adolescents are increasing, especially among girls. Russian youth is especially attracted to images of old American movies, and TV programs and they perceive smoking as “fashionable”, or “high class”.
Smoking habit
In Mongolia, 19% smoked non-filter cigarettes; 14,7% smoked hand-rolled cigarettes (mostly workers), and 24.6%, including pipe tobacco (mainly farmers) and role-your-owns (15%). Nasal shuff was used primarily by elderly males and chewing tobacco was consumed only in the western region of the country in 1991. Smokers smoked on average 11 cigarettes per day.
According to the Journal of American Medical Association, more than 300 million men and 20 million women smoke in China. Only 6% of women currently smoke. The perception ofcigarettes as both fashionable and weight-control aid, could lead to an explosion of smoking rates among women. While in the most countries, smokers tend to stay loyal to one brand, Russian smokers often try a whole array of cigarettes before setting on one brand.
Tobacco related illnesses
Between 25% and 30% of heart diseases and cancers are caused by smoking in Russia. Tobacco causes 32% of all male deaths and 5% of all female deaths.
An official study conducted 48 major cities found that more than 82 percent of consumers know that smoking hams health. But one third of Chinese people did not know what are particular dangers caused by smoking. General Zhang Chaoyang, secretary of China Consumers Association announced on March 15, 2001 at the press conference, “Despite fancy tobacco advertisements and promotional campaigns, more and more Chinese consumers have realized that few puffs on cigarettes every day may take a huge toll on their health and set about ti change the unhealthy habit.”
Smuggling
Smuggling exists in all of the three countries. Widespread smuggling exists in Mongolia. In result of establishment open trade with China since 1990, the Mongolian people have experimented many counterfeit goods including tobacco. Independent retailers of small companies import fake cigarettes from China.
This problem is transcended to other countries rather than these three neighboring countries. The U.K. government employed more custom officials, put large container scanners and added stiffer sentences in order to investigate tobacco smuggling. Investigators found packets shipped to Britain from China. Criminal gangs are forging bixes in the colors of established brands such as Marlboro and filling them with cheaper cigarettes. Chihese authorities broke up 2,427 underground cigarette factories in 1999. This year 60 million cartons of illegal cigarettes valued at 700 million yaun ($84 million) were confiscated. Alomost 300 illegal cigarette markets throughout the country have been shut down.
Because of the lack of quality control over tobacco products and unprecedented smuggling, Russia was flooded with cheap cigarettes of dubious quality, with small or no health warnings at all. Contraband and counterfeit goods make up around 4 to 5 percent of the total market.
On the streets, elderly people mostly women sell packs of cigarettes to anyone with the cash no matter how young.
Tobacco regulation and advertising
Mongolia
Ary Assuma, a coordinator of several major health campaigns in Malaysia pointed out at the symposium on tobacco control in Geneva IN 1999 that Thailand and Mongolia have comprehensive tobacco-control programs in contrast to other Asian countries. The Ministry Health and Social Services first addressed tobacco control in 1984 with directives concerning smoke-free premises. Since 1988, there has been a ban on cigarette sales to children under the age of 16. In 1990 and 1991, the Ministry Health invited a WHO Consultant to advise on national tobacco control policy and legislation. In March 1994, comperensive legislation came into affect. However, implementation and endorcement of the law are proving to be problematic.
Since 1994 health warnings are required on cigarette packets (6 warnings have been to introduced), and tar and nicotine upper limits have been regulated. There are bans on direct advertising and sponsorship. Despite this ban, RJR promoted the Camel Trophy’ 97 jeep adventure tour in Mongolia. Radio, television, cinema and print media have been used to broadcast anti-smoking messages. Many of the health messages are on the economic impact of smoking (including reduced productivity), as well as on the risk of fores. Sports personalities are shown to emphasize a positive, healthy lifestyle. The Methodological Center on Anti-Alcoholic and Anti-Smoking Activities runs smoking cessation classes and established a Quitters Club in 1987. Implementation and endorcement of legislated tobacco control measures is not always possible.
Smoking was first prohibited on public transport and in health facilities, as well as many other worksites, including electricity stations, Army clinics, and at the Institute of Agriculture. That ban has been extended to prohibit in many public places, transport vehicles, offices, and schools.
China
The State Council is requiring of “reducing the nation’s tobacco stocks by 20 million dan (100 million kg/220 million lbs.) within three years starting from 2000. The government also plans to help big and meium-sized companies in the tobacco industry to reduce their total losses to around 15%, so the industry as a whole can stop incurring losses. To do this, the government aims to reduce its tobacco inventories to 1 million tons within three years.
As Jara Parker-Pope, state owned monopolies don’t have a need to advertise because they are the only game in the area. The Beijing Government jealiously guards its monopoly, relying on cigarette sales for 12 percent of its annual revenue (p.48). here are more than 900 brands. And some joint ventures and licencing agreements with Western companies are sponsoring countless radio shows and sporting events. Brand namews like Marlboro and Salem are on the café umbrellas.
The State Administration for Entry-Exit Inspection and Quarantine is responsible for testing and certification of tobacco goods along with other products. Pricing departments across the country will carry out eight price-relted inspections in areas including electricity, public security, tourism, housing and real state management, car purchases, education, agriculture, garin, and tobacco.
According to the Times of India, “Though tobacco advertising in developing countries is at present directed towards the general public, attempts are being made in China, Sri Lanka and the Philippines to target women (January 10, 2000)”.
Russia
The country did not have reliable, independent control of tobacco products before. Currently there are three laboratories that provide such control: the Laboratory of the Russian Research Institute of Tobacco and Makhorka in the city of Krasnodar; the Laboratory of the Oncological Research Center in Moscow; and the Laboratory for Tobacco Quality Control in Moscow. Russian market is improving value of cigarettes and making them cheaper while lowering tar and nicotine. Currently, only 49 percent of Russia’s tobacco factories have technical ability to meet requirement for nicotine limits.
Increased number of tobacco led to the massive amounts of tobacco advertising. American tobacco companies heavily advertise in Russia using American symbols such as billboards with the Marlboro Man.
Anti-tobacco video on TV during the daytime when most people are at work or at school. In contrast, a tobacco company has recently provided the bulk of 150,000 dollars spent on just one advertising festival in Moscow.
Adevertisement on local products appeals to Russian patriotism. Its pack depicts the battle at Sevastoplo and Borodino-glorious pages in Russian history. The motto is no less patriotic: “Changing the aims, we remain faithful to her.”
Irina Kazovskaya, PR representative of Eurotabak said “With advertisements you can persuade people to smoke even not-so-good cigarettes”(July, 2000). Indeed no product is so fiercely advertised in Moscow as cigarettes. Huge posters and billboards appeal to experimenting Russian smoker: “The night is yours-turn up the fire,” whispers Pall Mall; “Bet on the winner.” Boldly advises West1; “Is really possible to refuse yourself?”, tempts a Winston.
According to the Article 16 of the Advertising law, there are some limits on tobacco advertisement. It says, advertisements for alcoholic drinks, tobacco and tobacco products disseminated by any method must not:
· Be disseminated on radio or television prorams between 7 a.m. and 10 p.m. local time;
· Be disseminated in any form on radio or television programs, cinema or video services or printed publications for minors;
· Be disseminated on the first or last pages or a newspaper or on the first or last pages of covers or a magazine;
· Be disseminated at children’s, scholastic, medical, sporting or cultural organizations, or within 100 meters of them.
In addition, the law prohibits to demonstrate process of smoking and to use image of popular among youth person in ads. As law says all tobacco products must be accompanied by warning on dangers of smoking.
Summary
Tobacco brings much money to the government budget in three neighboring countries in Mongolia, China and Russia. Mongolia has more restrictive regulation banning all kinds of tobacco advertising. In contrast, China has almost no banning on tobacco advertisement because the largest tobacco corporation is owned by the State. Russia’s advertising law is weak. It aims mostly on children. In reality, the most ads are targeted to women. Cigarette companies have portryed smoking as a “torch of freedom”, “a tool of beauty” and a sign of progress.
In general, Russia is becoming increasingly lucrative market for cigarette manufacturers from Western Europe and the United States. Newly built cigarette factories in Russia are results of the tobacco industry’s response to legal setbacks in the West. Those factories have been touted as an economic benefit, not a risk to that nation’s health.
China is succeeding in increasing both its production and sales of tobacco, while also decreasing its stocks of its product.
The marketing and advertising pressure from the tobacco companies that the U.S. experienced in the 40’s, 50’s and 60’s is now happenning in the developing countries. China and Thailand had taken steps to raise cigarette taxes.
Lured by financial gains, the tobacco industries is growing in both countries: Russia and China. Those countries’ policies will not be as effective unless transnational tobacco firms are made to limit their aggressive advertisements.
As long as cigarette makers produce cigarettes, they will sell them, consumers will buy them, and people continue to smoke. And if people keep smoking, the cigarette makers will continue to make money. It is paradox that their governments encourage their production and at the same time they want to regulate everything: production, price, sales and advertising. If the governments have interest to gain money for the budget as taxes from cigarattes, this circle will continue.
References:
Albarran, A. & Chan-Olmsted, S (1998). Global Media Economics. Iowa University Press.
Parker-Pope, J. (2001). Cigarettes. The New Press.
http://www.cdc.gov/tobacco/who/mongolia.html
http://www.chinaonline.com/
http://web.lexis-nexis.com/.lexis-nexis.com
2001 оны 5 дугаар сарын 9
Судалгааны ажлын жишээ
Хэдэн жилийн өмнө "Олон улсын зар сурталчилгаа" сэдэвт хичээл дээр хийж байсан ангийн ажлаа тавилаа. Багш, оюутнуудад хэрэг болуужин гэж бодлоо.
А.Оюунгэрэл
The United Kingdom and Two agencies with name Saatchi
Part one: Country Profile
The United Kingdom is multicultural nation like the United States of America. Even U.K. inhabitants often confuse the names England, Great Britain, and United Kingdom. England is just one country within the kingdom. Great Britain comprises England, Wales, and Scotland, while the United Kingdom also includes Northern Ireland (although the name Britain is sometimes used to refer to the United Kingdom as a whole). Wales and England were unified politically, administratively, and legally by the acts of union of 1536 and 1542. In 1707 Scotland joined England and Wales in forming a single parliament for Great Britain, although the three countries had previously shared a monarch.
The area of the United Kingdom is 94,251 square miles (244,110 square kilometers). At its widest the United Kingdom is 300 miles across. From the top of Scotland to the southern coast of England it is about 600 miles. No part is more than 75 miles from the sea. The national capital is London, situated on the River Tames in the southeastern corner of England.
The United Kingdom is characterized by a long history and by political and cultural links with other areas of the world, the latter mostly a legacy of its large former empire. In modern times the United Kingdom is perhaps best seen as a middle-sized, middle-ranking industrial country.
The political system of the United Kingdom has provided stability and consistency since the 19th century. It is a unitary system centered on London, with some responsibilities devolved to local governments. The national government is a parliamentary democracy dominated by the monarchy, which links the executive, legislature, judiciary, armed forces, and Church of England. Although in practice almost all responsibilities are deferred, the monarch and the royal family are a source of unity and national spirit. In Parliament the House of Lords still consists mainly of hereditary or appointed peers, while members of the House of Commons are elected by a simple "first-past-the-post" system.
This stability of institutions contrasts with and complements the striking heterogeneous social character of the United Kingdom. There is a vocal nationalist spirit in both Wales and Scotland, while division between the Protestant and Roman Catholic communities plagues Northern Ireland. Northern Ireland's troubles have led to terrorist actions, most notably by the Provisional Irish Republican Army (IRA).
Official language: English. Other languages: Welsh, Gaelic
Religion: Churches of England and Scotland. Roman Catholic. No established church in Northern Ireland or Wales.
Religious affiliation: Christian 65.9%, of which Protestant 53.4% (Anglican 43.5%, Presbyterian 4.5%, Methodist 2.2%), Roman Catholic 9.8%, Orthodox 1.0%, other Christian 1.7%; Muslim 2.6%; Hindu 0.6%; Sikh 0.5%; Jewish 0.5%; other/nonreligious 29.9%.
Major cities: Greater London 7,074,300; Birmingham 1,020,600; Leeds 726,900; Glasgow 616,400; Sheffield 530,400; Bradford 483,400; Liverpool 468,000; Edinburgh 448,900; Manchester 430,800; Bristol 399,600; Kirk lees 388,800; Wirral 329,200.
Internationally, the United Kingdom is part of the European Union. The country benefits from historical and cultural links with the United States and is a member of the North Atlantic Treaty Organization (NATO). This diversity of interests, together with a network of international relations, means that the United Kingdom is not easily identified as belonging to a specific geographic block among the Western industrialized nations.
Imports: £184,305,000,000 (machinery and transport equipment 42.2%, of which electrical equipment 19.8%, road vehicles 11.2%; chemicals 10.0%, of which organic chemicals 2.6%, plastics 2.4%; food 7.9%; clothing and footwear 4.3%; petroleum and petroleum products 3.1%; textiles 2.8%; paper and paperboard 2.7%).
Major import sources: Germany 14.7%; U.S. 12.4%; France 9.6%; The Netherlands 6.8%; Japan 4.9%; Italy 4.8%; Belgium-Luxembourg 4.7%; Ireland 3.9%; Switzerland 2.9%; Spain 2.7%.
Exports: £166,340,000,000 (machinery and transport equipment 44.1%, of which electrical equipment 19.8%, road vehicles 8.6%; chemicals 13.3%, of which organic chemicals 3.1%; petroleum and petroleum products 6.2%; food 4.2%; professional and scientific 4.0%; iron and steel products 2.4%).
Major export destinations: Germany 12.3%; U.S. 11.8%; France 10.2%; The Netherlands 8.0%; Ireland 5.2%; Belgium-Luxembourg 5.1%; Italy 4.8%; Spain 4.0%; Sweden 2.6%; Japan 2.5%; Switzerland 1.9%.
Economically the United Kingdom has benefited since the 1970s from production of oil from deposits in the North Sea. London has remained a leading world financial center, the time zone allowing it to bridge the gap between trading in Tokyo and New York City. The United Kingdom's traditional strength in manufacturing, however, has been eroded, with employment in manufacturing falling in absolute terms. This has undoubtedly contributed to the stark differences in the social and economic composition of the industrialized north and the more service-oriented, prosperous south, creating a north-south divide.
The United Kingdom now ranks among the top industrial countries in growth rates, productivity, and competitiveness. The share of manufacturing's contribution to gross domestic product has declined to about one-fourth of the total, with services providing the source of greatest growth. The United States is a major influence and trading partner, and Japan has become a significant investor in local production, Japanese companies often choosing the United Kingdom as their European base. In addition, other fast-developing East Asian countries with export-oriented economies include the United Kingdom's open market among their important outlets.
Gross national product: U.S.$1,152,136,000,000 (U.S.$19,600 per capita).
Budget (1996-97). Revenue: £280,900,000,000 (income tax 33.5%, value-added 16.9%, social security contributions 16.6%). Expenditures: £308,500,000,000 (social security 24.9%, health 11.0%, debt interest 7.2%, defense 7.2%).
Material well being. Households possessing: automobile 69.7%, telephone 92.4%, television receiver 98.3% (color 95%), refrigerator 98.5%, central heating 85.3%, washing machine 90.9%, video recorder 79.2%.
Transport. Railroads: length 23,518 mi, 37,849 km; Roads: total length 228,042 mi, 366,999 km (paved 100%). Vehicles: passenger cars 20,505,000, trucks and buses 2,712,000. Merchant marine: vessels (over 100 gross tons) 1,631; total deadweight tonnage 4,355,063. Air transport: passenger-mi 77,575,900,000, passenger-km 124,846,500,000; short ton-mi cargo 2,662,600,000, metric ton-km cargo 3,831,900,000; airports 57.
Monetary unit: 1 pound sterling (£) = 100 new pence; valuation (Sept. 25, 1998) 1 £ = U.S.$1.70; 1 U.S.$ = £0.59.
Socially the United Kingdom suffers pockets of poverty, with some inner-city areas among the worst in Europe. The growth in ethnic minorities from former colonies has enriched the nation's cultural fabric but added to social tensions, occasionally fueling violence. In contrast, home ownership is widespread and, while the state supports an educational system, public schools--which despite their title are part of the private sector--thrive. With some exceptions, notably curbs on public servants, freedom of expression is not restricted, and the United Kingdom is renowned for the strength of its arts.
Literacy: total population literate, virtually 100%
Educational attainment. Percentage of population age 25 and over having: primary or secondary education only 89.7%; some postsecondary 4.8%; bachelor's or equivalent degree 4.9%; higher university degree 0.6%.
Quality of working life. Average workweek (hours): male 43.3, female 30.2.
Social participation. Eligible voters participating in last national election (May 1997): 71.3%. Population age 16 and over participating in voluntary work: 22%. Trade union membership in total workforce 32.0%.
Leisure. Favorite leisure activities (hours weekly): watching television 17.1; listening to radio 10.3; reading 8.8, of which books 3.8, newspapers 3.3; gardening 2.1.
Demographically, just under half of the total population is in the labor force. Within this group are small numbers of self-employed workers, as well as members of the armed forces and of work-related government training programs. The highest proportion of employees (more than two-thirds) is in the service sectors, with financial services and distribution the largest. Manufacturing, although it has declined, employs more than one-fifth of all workers. Smaller numbers are in construction, energy, agriculture, forestry, and fishing. The number of part-time workers has increased considerable.
Population (1998): 59,126,000.
Density: persons per sq mi 627.3, persons per sq km 242.2.
Urban-rural: urban 89.4%; rural 10.6%.
Sex distribution: male 49.09%; female 50.91%.
Age breakdown: under 15, 19.5%; 15-29, 20.1%; 30-44, 21.9%; 45-59, 18.0%; 60-74, 13.3%; 75 and over, 7.2%.
Population projection: (2010) 60,800,000.
Ethnic composition: white 93.7%; Asian Indian 1.8%; Pakistani 1.4%; Black 1.4%; other and not stated 1.6%.
Average household size: 2.4; 1 person
Immigration: permanent residents 245,000, from United States 11.0%, Australia 8.6%, Bangladesh, India, and Sri Lanka 4.5%, New Zealand 4.1%, South Africa 3.7%, Canada 3.3%, other 64.8%, of which EU 14.7%.
Life expectancy at birth: male 74.4 years; female 79.7 years
Food: daily per capita caloric intake 3,149 (vegetable products 67%, animal products 33%); 125% of FAO recommended minimum requirement.
Part two: Advertising agencies’ current situation
There are two advertising agencies with name Saatchi: Saatchi & Saatchi and M&C Saatchi. Both of them are worldwide and UK based. The difference is in their ownership and size. Saatchi & Saatchi has shareholders, but M&C Saatchi is purely private company. Saatchi & Saatchi has its branches in 90 countries, M&C Saatchi-in nine countries. The website introduce them in the following ways.
Saatchi & Saatchi Advertising
Saatchi & Saatchi's comparatively brief period of independence started in December 1997, when the agency was demerged from corporate parent Cordiant in a curious reversal of the procedure by which original founders Charles and Maurice created their advertising empire during the Eighties. In June 2000, acquisitive French group Publics, keen to strengthen their hold on the US market where Saatchi’s generate the majority of profits snapped up the network. Pre-acquisition, Advertising Age ranked Saatchi's as the #12 ad organization worldwide in 1999 with gross income of $732m and billings of $7.5bn. Excluding specialized marketing subsidiaries, the agency brand was ranked #17 ad network with gross income of $568m on billings of $5.7bn.
Formerly the holding company for both the Saatchi & Saatchi and Bates Worldwide agency networks,
Cordiant demerged its two principal businesses in December 1997. As a result, the group has ended up as a virtual independent, although it now tops most industry lists as the most likely target for merger or acquisition by a larger marketing group. Advertising Age rank Cordiant as the #13 ad organization worldwide with gross income of $713m and billings of $9.3bn (http://saatchi-saatchiplc.com/).
M&C Saatchi
M&C Saatchi has built up a strong position for itself since formation in January 1995, largely through the much-publicized support of longstanding clients British airways and Mars. Though it doesn't begin to compare t o Saatchi & Saatchi in worldwide size, the brothers' agency still holds a unique position in the UK industry. There's limited scope, however, to mine the existing client list. Though it has offices in nine countries outside the UK, and handles such clients as British Airways, Qantas, Glaxo Smithkline, Pfizer, Rover and Pfizer Consumer Healthcare in various countries, only British Airways can be counted as a truly global client, handled in six countries (http://www.m&saatchi.com/).
Further we can find many facts related to current activities of two agencies on the web sites. For instance, Saatchi & Saatchi’s eponymous ad agency provides creative advertising and marketing services to such clients as Sony and DuPont through its 150 offices in 90 countries. Toyota and Procter & Gamble account for 20% and 14% of its sales. Saatchi & Saatchi owns 70% of creative services firm The Facilities Group and 50% of media buying and planning unit Zenith Media Worldwide. The agency also offers public relations services through Rowland Worldwide. About 50% of sales come from North America. Saatchi & Saatchi is a division of French ad firm Publics Groupe.
Regarding to M&C Saatchi we find following information. M&C Saatchi was named by Campaign, the British trade newspaper, as 1999 Agency of the Year. The award not only recognizes the agency's achievement of becoming the UK's sixth-largest shop within four years of its controversial launch, but also a period in which BT, Rover and Sainsbury's all joined its client roster. TBWA GGT Simons Palmer and WCRS ran the agency close. But M&C Saatchi won on the strength of its ability to tailor itself to client needs and win business on its own merits, rather than the connections of its founding partners. Above all, the award marks the agency's coming of age and this year it answered criticisms that the agency's most powerful driving force was Maurice Saatchi's desire to get even.
The last branch-office of M&C Saatchi opened its door for clients are in South Africa in December 2000. The new agency started with a small client previously handled from London, the Spier Festival, but first priority is to win more business.
The Saatchis had done some of their best work for British Airways before they were ousted from their first agency, and the client remained loyal to them when they left. But other clients have come on board since, helping to build M&C Saatchi into Britain's sixth-biggest agency, with billings of R2, 7bn.
Two strong admen connect these two different advertising agencies back in history. Maurice and Charles Saatchi are two venerable and legendary names in advertising business. After Maurice and Charles Saatchi were ousted five years ago from Saatchi & Saatchi, their names started to relate to M&S Saatchi agency.
It is interesting to know how did they start in advertising business? How did they become so famous?
History of the brothers
Ivan Fallon (The brothers. 1989) and Kevin Goldman (Conflicting Accounts. 1997) wrote separate books about the brothers. *** Both authors tell detailed description of history how the brothers started.
In the middle of May 1970 Charles Saatchi emerged from the office and announced that Cramer-Saatchi agency would become Saatchi & Saatchi. “It’s bloody good name for a new advertising agency,” he went on. “Saatchi & Saatchi-it’s so bizarre no one will ever forget it in hurry.” (Fallon, p.42). Before that he run with Ross Cramer ad agency three years. They were good partners. Ross Cramer wanted to leave. He did not want to enter the agency world again. Therefore he took his younger brother Maurice who encouraged him all the time. Maurice had never worked for the agency before but he had other virtues. Maurice left his work at Haymarket publishing company for Saatchi & Saatchi.
Charles and Maurice Saatchi are Iraqi Jews. They were born in Baghdad: Charles in 1943 and Maurice in 1946. They are middle of four sons of Nathan and Daisy Saatchi who immigrated with their children to England in 1947. “Sa’aatchi” in translation from Arabic means “watchmaker” or “watch dealer”. However, Nathan Saatchi was a successful textile merchant. His sons were growing in “very religious family” in strong family tie. But all of them have so different characters and personalities.
Charles was “the problem child”. He left school at seventeen. He was an avid TV watcher, absorbing both the culture and TV advertisements. Charles did more than watch: he raced (Fallon, p16). While he was racing on the transverse-engined Mini, his brother Maurice was his faithful supporter and mechanic.
In contrast, Maurice was quieter, shyer, and academically far brighter. He was consistently honor student at Tollington Grammar School. He is only university graduate among employees of Saatchi & Saatchi. He graduated the London School of Economics. His professor Persy Cohen remembers Maurice’s habit of listening and observing and not committing himself quickly: “You could never imagine him panicking.” (Fallon, p.17)
The have registered their agency in August 1970. Wile Charles was dominating the creative output, preparing pitches and even presenting to clients, Maurice was drumming up new business. Charles made much of concentration on creativity. His philosophy was simple. “The creative function is the main one of only two services an agency should provide: the other is media buying”, he said (Fallon, p.69). He wishes all his creative people would have to act as if they were salesmen.
Maurice was not greatly involved in the creative side. First thing he did for the agency was moving it to the elegant building on the Golden Square. He run errands, did research, made twenty-five telephone calls. He proved to be an excellent new business getter and presenter. He was also a natural organizer. He did a lot to present the agency saying oh the phone: “Hello, may name is Maurice Saatchi, and we’re a new advertising agency. Although you’re very happy with your present advertising agency, I think it would be worthwhile your coming to talk to us and see a presentation we have prepared for you.” (Fallon, p. 72)
Charles had ability to generate personal publicity. He conducted one-man press campaign by telephone when he was working with Cramer. He picked up ad-industry gossip and shaped into news items, and phoned them to magazines. In return he expected some favorable mention of his own activities. He cultivated fame in another way too: through recognition for the quality of his creative advertisements. His Ford ad was included in the 1967 Selfridge’s ad annual.
First time the Health Education Counsel was only one client. Then Citrus Marketing Board of Israel became the second one. Imaginative ideas of Maurice to hire food retailer, to provide management consultancy, to have a good media buyer, or to hire a woman for creation of cosmetics ad kept the agency to grow and grow. At the end of first year the agency had made a profit nearly 20,000 pounds. Toward the end of their second year, the Saatchis decided to buy out the original investors: Lindsay Masters, Mary Quant, and Plunket-Greene. That year its profit was 90,000 pounds. They wanted to acquire everything: research, management, and marketing companies. They wanted to be number one.
The ad “The pregnant man” by Jeremy Sinclair brought recognition to the agency on the international arena. I became an icon of sorts for the agency. In 1987 Harvard Business School did a case study and concluded “pregnant man established Saatchi & Saatchi’s reputation as the UK’s creative agency. The ad for the conservative party was credited by many with propelling Margaret Thatcher into power as a Prime Minister.
Saatchi & Saatchi had a policy not to meet clients. Also, they had a policy not to seek 15% compensation on billings, the traditional industry standard. The Saatchis described it as ‘dying system,” so they would charge clients 22%.
Everything went well with its ups and downs until, the board of directors under threat fired Maurice the firm’s largest shareholders in December 16, 1994. Then Charles left the agency following his brother. They started over again a month later with a new rival agency name M&C Saatchi. It quickly snapped up former Saatchi & Saatchi clients, most importantly British Airways.
By May 1996, Saatchi & Saatchi Advertising lost its status as the UK’s largest ad agency for the first time since 1988 (Goldman, p.347). But Saatchi & Saatchi survived with the Cordiant.
References:
Fallon, I. (1989). The brothers. Century Hudson
Goldman, K (1997). Conflicting Accounts. Simon & Schuster
http://www.britannica.com/
http://saatchi-saatchiplc.com/
http://www.m&saatchi.com/
---------------------------------------------------------------
*British Airways is the world's busiest international passenger airline group; carrying more than 45m passengers in 1999 in over 1,000 flights a day to 474 scheduled destinations in 103 countries.
**Owned and controlled by the Mars family, this US confectionery giant is one of the world's biggest private companies, but also one of the most secretive. The seeds of a global empire were sown in a bitter row during the Thirties between founder Franklin Mars and his son Forrest. Now the business has interests ranging from pet food to electronics, from Uncle Ben's rice to vending machines. (Advertising Age estimate a 1998 global media spend of $1.1bn, of which $793m was outside the US, making it the world's #11 advertiser).
***Tim Bell, media director is considered to be the third brother for the Saatchis
А.Оюунгэрэл
The United Kingdom and Two agencies with name Saatchi
Part one: Country Profile
The United Kingdom is multicultural nation like the United States of America. Even U.K. inhabitants often confuse the names England, Great Britain, and United Kingdom. England is just one country within the kingdom. Great Britain comprises England, Wales, and Scotland, while the United Kingdom also includes Northern Ireland (although the name Britain is sometimes used to refer to the United Kingdom as a whole). Wales and England were unified politically, administratively, and legally by the acts of union of 1536 and 1542. In 1707 Scotland joined England and Wales in forming a single parliament for Great Britain, although the three countries had previously shared a monarch.
The area of the United Kingdom is 94,251 square miles (244,110 square kilometers). At its widest the United Kingdom is 300 miles across. From the top of Scotland to the southern coast of England it is about 600 miles. No part is more than 75 miles from the sea. The national capital is London, situated on the River Tames in the southeastern corner of England.
The United Kingdom is characterized by a long history and by political and cultural links with other areas of the world, the latter mostly a legacy of its large former empire. In modern times the United Kingdom is perhaps best seen as a middle-sized, middle-ranking industrial country.
The political system of the United Kingdom has provided stability and consistency since the 19th century. It is a unitary system centered on London, with some responsibilities devolved to local governments. The national government is a parliamentary democracy dominated by the monarchy, which links the executive, legislature, judiciary, armed forces, and Church of England. Although in practice almost all responsibilities are deferred, the monarch and the royal family are a source of unity and national spirit. In Parliament the House of Lords still consists mainly of hereditary or appointed peers, while members of the House of Commons are elected by a simple "first-past-the-post" system.
This stability of institutions contrasts with and complements the striking heterogeneous social character of the United Kingdom. There is a vocal nationalist spirit in both Wales and Scotland, while division between the Protestant and Roman Catholic communities plagues Northern Ireland. Northern Ireland's troubles have led to terrorist actions, most notably by the Provisional Irish Republican Army (IRA).
Official language: English. Other languages: Welsh, Gaelic
Religion: Churches of England and Scotland. Roman Catholic. No established church in Northern Ireland or Wales.
Religious affiliation: Christian 65.9%, of which Protestant 53.4% (Anglican 43.5%, Presbyterian 4.5%, Methodist 2.2%), Roman Catholic 9.8%, Orthodox 1.0%, other Christian 1.7%; Muslim 2.6%; Hindu 0.6%; Sikh 0.5%; Jewish 0.5%; other/nonreligious 29.9%.
Major cities: Greater London 7,074,300; Birmingham 1,020,600; Leeds 726,900; Glasgow 616,400; Sheffield 530,400; Bradford 483,400; Liverpool 468,000; Edinburgh 448,900; Manchester 430,800; Bristol 399,600; Kirk lees 388,800; Wirral 329,200.
Internationally, the United Kingdom is part of the European Union. The country benefits from historical and cultural links with the United States and is a member of the North Atlantic Treaty Organization (NATO). This diversity of interests, together with a network of international relations, means that the United Kingdom is not easily identified as belonging to a specific geographic block among the Western industrialized nations.
Imports: £184,305,000,000 (machinery and transport equipment 42.2%, of which electrical equipment 19.8%, road vehicles 11.2%; chemicals 10.0%, of which organic chemicals 2.6%, plastics 2.4%; food 7.9%; clothing and footwear 4.3%; petroleum and petroleum products 3.1%; textiles 2.8%; paper and paperboard 2.7%).
Major import sources: Germany 14.7%; U.S. 12.4%; France 9.6%; The Netherlands 6.8%; Japan 4.9%; Italy 4.8%; Belgium-Luxembourg 4.7%; Ireland 3.9%; Switzerland 2.9%; Spain 2.7%.
Exports: £166,340,000,000 (machinery and transport equipment 44.1%, of which electrical equipment 19.8%, road vehicles 8.6%; chemicals 13.3%, of which organic chemicals 3.1%; petroleum and petroleum products 6.2%; food 4.2%; professional and scientific 4.0%; iron and steel products 2.4%).
Major export destinations: Germany 12.3%; U.S. 11.8%; France 10.2%; The Netherlands 8.0%; Ireland 5.2%; Belgium-Luxembourg 5.1%; Italy 4.8%; Spain 4.0%; Sweden 2.6%; Japan 2.5%; Switzerland 1.9%.
Economically the United Kingdom has benefited since the 1970s from production of oil from deposits in the North Sea. London has remained a leading world financial center, the time zone allowing it to bridge the gap between trading in Tokyo and New York City. The United Kingdom's traditional strength in manufacturing, however, has been eroded, with employment in manufacturing falling in absolute terms. This has undoubtedly contributed to the stark differences in the social and economic composition of the industrialized north and the more service-oriented, prosperous south, creating a north-south divide.
The United Kingdom now ranks among the top industrial countries in growth rates, productivity, and competitiveness. The share of manufacturing's contribution to gross domestic product has declined to about one-fourth of the total, with services providing the source of greatest growth. The United States is a major influence and trading partner, and Japan has become a significant investor in local production, Japanese companies often choosing the United Kingdom as their European base. In addition, other fast-developing East Asian countries with export-oriented economies include the United Kingdom's open market among their important outlets.
Gross national product: U.S.$1,152,136,000,000 (U.S.$19,600 per capita).
Budget (1996-97). Revenue: £280,900,000,000 (income tax 33.5%, value-added 16.9%, social security contributions 16.6%). Expenditures: £308,500,000,000 (social security 24.9%, health 11.0%, debt interest 7.2%, defense 7.2%).
Material well being. Households possessing: automobile 69.7%, telephone 92.4%, television receiver 98.3% (color 95%), refrigerator 98.5%, central heating 85.3%, washing machine 90.9%, video recorder 79.2%.
Transport. Railroads: length 23,518 mi, 37,849 km; Roads: total length 228,042 mi, 366,999 km (paved 100%). Vehicles: passenger cars 20,505,000, trucks and buses 2,712,000. Merchant marine: vessels (over 100 gross tons) 1,631; total deadweight tonnage 4,355,063. Air transport: passenger-mi 77,575,900,000, passenger-km 124,846,500,000; short ton-mi cargo 2,662,600,000, metric ton-km cargo 3,831,900,000; airports 57.
Monetary unit: 1 pound sterling (£) = 100 new pence; valuation (Sept. 25, 1998) 1 £ = U.S.$1.70; 1 U.S.$ = £0.59.
Socially the United Kingdom suffers pockets of poverty, with some inner-city areas among the worst in Europe. The growth in ethnic minorities from former colonies has enriched the nation's cultural fabric but added to social tensions, occasionally fueling violence. In contrast, home ownership is widespread and, while the state supports an educational system, public schools--which despite their title are part of the private sector--thrive. With some exceptions, notably curbs on public servants, freedom of expression is not restricted, and the United Kingdom is renowned for the strength of its arts.
Literacy: total population literate, virtually 100%
Educational attainment. Percentage of population age 25 and over having: primary or secondary education only 89.7%; some postsecondary 4.8%; bachelor's or equivalent degree 4.9%; higher university degree 0.6%.
Quality of working life. Average workweek (hours): male 43.3, female 30.2.
Social participation. Eligible voters participating in last national election (May 1997): 71.3%. Population age 16 and over participating in voluntary work: 22%. Trade union membership in total workforce 32.0%.
Leisure. Favorite leisure activities (hours weekly): watching television 17.1; listening to radio 10.3; reading 8.8, of which books 3.8, newspapers 3.3; gardening 2.1.
Demographically, just under half of the total population is in the labor force. Within this group are small numbers of self-employed workers, as well as members of the armed forces and of work-related government training programs. The highest proportion of employees (more than two-thirds) is in the service sectors, with financial services and distribution the largest. Manufacturing, although it has declined, employs more than one-fifth of all workers. Smaller numbers are in construction, energy, agriculture, forestry, and fishing. The number of part-time workers has increased considerable.
Population (1998): 59,126,000.
Density: persons per sq mi 627.3, persons per sq km 242.2.
Urban-rural: urban 89.4%; rural 10.6%.
Sex distribution: male 49.09%; female 50.91%.
Age breakdown: under 15, 19.5%; 15-29, 20.1%; 30-44, 21.9%; 45-59, 18.0%; 60-74, 13.3%; 75 and over, 7.2%.
Population projection: (2010) 60,800,000.
Ethnic composition: white 93.7%; Asian Indian 1.8%; Pakistani 1.4%; Black 1.4%; other and not stated 1.6%.
Average household size: 2.4; 1 person
Immigration: permanent residents 245,000, from United States 11.0%, Australia 8.6%, Bangladesh, India, and Sri Lanka 4.5%, New Zealand 4.1%, South Africa 3.7%, Canada 3.3%, other 64.8%, of which EU 14.7%.
Life expectancy at birth: male 74.4 years; female 79.7 years
Food: daily per capita caloric intake 3,149 (vegetable products 67%, animal products 33%); 125% of FAO recommended minimum requirement.
Part two: Advertising agencies’ current situation
There are two advertising agencies with name Saatchi: Saatchi & Saatchi and M&C Saatchi. Both of them are worldwide and UK based. The difference is in their ownership and size. Saatchi & Saatchi has shareholders, but M&C Saatchi is purely private company. Saatchi & Saatchi has its branches in 90 countries, M&C Saatchi-in nine countries. The website introduce them in the following ways.
Saatchi & Saatchi Advertising
Saatchi & Saatchi's comparatively brief period of independence started in December 1997, when the agency was demerged from corporate parent Cordiant in a curious reversal of the procedure by which original founders Charles and Maurice created their advertising empire during the Eighties. In June 2000, acquisitive French group Publics, keen to strengthen their hold on the US market where Saatchi’s generate the majority of profits snapped up the network. Pre-acquisition, Advertising Age ranked Saatchi's as the #12 ad organization worldwide in 1999 with gross income of $732m and billings of $7.5bn. Excluding specialized marketing subsidiaries, the agency brand was ranked #17 ad network with gross income of $568m on billings of $5.7bn.
Formerly the holding company for both the Saatchi & Saatchi and Bates Worldwide agency networks,
Cordiant demerged its two principal businesses in December 1997. As a result, the group has ended up as a virtual independent, although it now tops most industry lists as the most likely target for merger or acquisition by a larger marketing group. Advertising Age rank Cordiant as the #13 ad organization worldwide with gross income of $713m and billings of $9.3bn (http://saatchi-saatchiplc.com/).
M&C Saatchi
M&C Saatchi has built up a strong position for itself since formation in January 1995, largely through the much-publicized support of longstanding clients British airways and Mars. Though it doesn't begin to compare t o Saatchi & Saatchi in worldwide size, the brothers' agency still holds a unique position in the UK industry. There's limited scope, however, to mine the existing client list. Though it has offices in nine countries outside the UK, and handles such clients as British Airways, Qantas, Glaxo Smithkline, Pfizer, Rover and Pfizer Consumer Healthcare in various countries, only British Airways can be counted as a truly global client, handled in six countries (http://www.m&saatchi.com/).
Further we can find many facts related to current activities of two agencies on the web sites. For instance, Saatchi & Saatchi’s eponymous ad agency provides creative advertising and marketing services to such clients as Sony and DuPont through its 150 offices in 90 countries. Toyota and Procter & Gamble account for 20% and 14% of its sales. Saatchi & Saatchi owns 70% of creative services firm The Facilities Group and 50% of media buying and planning unit Zenith Media Worldwide. The agency also offers public relations services through Rowland Worldwide. About 50% of sales come from North America. Saatchi & Saatchi is a division of French ad firm Publics Groupe.
Regarding to M&C Saatchi we find following information. M&C Saatchi was named by Campaign, the British trade newspaper, as 1999 Agency of the Year. The award not only recognizes the agency's achievement of becoming the UK's sixth-largest shop within four years of its controversial launch, but also a period in which BT, Rover and Sainsbury's all joined its client roster. TBWA GGT Simons Palmer and WCRS ran the agency close. But M&C Saatchi won on the strength of its ability to tailor itself to client needs and win business on its own merits, rather than the connections of its founding partners. Above all, the award marks the agency's coming of age and this year it answered criticisms that the agency's most powerful driving force was Maurice Saatchi's desire to get even.
The last branch-office of M&C Saatchi opened its door for clients are in South Africa in December 2000. The new agency started with a small client previously handled from London, the Spier Festival, but first priority is to win more business.
The Saatchis had done some of their best work for British Airways before they were ousted from their first agency, and the client remained loyal to them when they left. But other clients have come on board since, helping to build M&C Saatchi into Britain's sixth-biggest agency, with billings of R2, 7bn.
Two strong admen connect these two different advertising agencies back in history. Maurice and Charles Saatchi are two venerable and legendary names in advertising business. After Maurice and Charles Saatchi were ousted five years ago from Saatchi & Saatchi, their names started to relate to M&S Saatchi agency.
It is interesting to know how did they start in advertising business? How did they become so famous?
History of the brothers
Ivan Fallon (The brothers. 1989) and Kevin Goldman (Conflicting Accounts. 1997) wrote separate books about the brothers. *** Both authors tell detailed description of history how the brothers started.
In the middle of May 1970 Charles Saatchi emerged from the office and announced that Cramer-Saatchi agency would become Saatchi & Saatchi. “It’s bloody good name for a new advertising agency,” he went on. “Saatchi & Saatchi-it’s so bizarre no one will ever forget it in hurry.” (Fallon, p.42). Before that he run with Ross Cramer ad agency three years. They were good partners. Ross Cramer wanted to leave. He did not want to enter the agency world again. Therefore he took his younger brother Maurice who encouraged him all the time. Maurice had never worked for the agency before but he had other virtues. Maurice left his work at Haymarket publishing company for Saatchi & Saatchi.
Charles and Maurice Saatchi are Iraqi Jews. They were born in Baghdad: Charles in 1943 and Maurice in 1946. They are middle of four sons of Nathan and Daisy Saatchi who immigrated with their children to England in 1947. “Sa’aatchi” in translation from Arabic means “watchmaker” or “watch dealer”. However, Nathan Saatchi was a successful textile merchant. His sons were growing in “very religious family” in strong family tie. But all of them have so different characters and personalities.
Charles was “the problem child”. He left school at seventeen. He was an avid TV watcher, absorbing both the culture and TV advertisements. Charles did more than watch: he raced (Fallon, p16). While he was racing on the transverse-engined Mini, his brother Maurice was his faithful supporter and mechanic.
In contrast, Maurice was quieter, shyer, and academically far brighter. He was consistently honor student at Tollington Grammar School. He is only university graduate among employees of Saatchi & Saatchi. He graduated the London School of Economics. His professor Persy Cohen remembers Maurice’s habit of listening and observing and not committing himself quickly: “You could never imagine him panicking.” (Fallon, p.17)
The have registered their agency in August 1970. Wile Charles was dominating the creative output, preparing pitches and even presenting to clients, Maurice was drumming up new business. Charles made much of concentration on creativity. His philosophy was simple. “The creative function is the main one of only two services an agency should provide: the other is media buying”, he said (Fallon, p.69). He wishes all his creative people would have to act as if they were salesmen.
Maurice was not greatly involved in the creative side. First thing he did for the agency was moving it to the elegant building on the Golden Square. He run errands, did research, made twenty-five telephone calls. He proved to be an excellent new business getter and presenter. He was also a natural organizer. He did a lot to present the agency saying oh the phone: “Hello, may name is Maurice Saatchi, and we’re a new advertising agency. Although you’re very happy with your present advertising agency, I think it would be worthwhile your coming to talk to us and see a presentation we have prepared for you.” (Fallon, p. 72)
Charles had ability to generate personal publicity. He conducted one-man press campaign by telephone when he was working with Cramer. He picked up ad-industry gossip and shaped into news items, and phoned them to magazines. In return he expected some favorable mention of his own activities. He cultivated fame in another way too: through recognition for the quality of his creative advertisements. His Ford ad was included in the 1967 Selfridge’s ad annual.
First time the Health Education Counsel was only one client. Then Citrus Marketing Board of Israel became the second one. Imaginative ideas of Maurice to hire food retailer, to provide management consultancy, to have a good media buyer, or to hire a woman for creation of cosmetics ad kept the agency to grow and grow. At the end of first year the agency had made a profit nearly 20,000 pounds. Toward the end of their second year, the Saatchis decided to buy out the original investors: Lindsay Masters, Mary Quant, and Plunket-Greene. That year its profit was 90,000 pounds. They wanted to acquire everything: research, management, and marketing companies. They wanted to be number one.
The ad “The pregnant man” by Jeremy Sinclair brought recognition to the agency on the international arena. I became an icon of sorts for the agency. In 1987 Harvard Business School did a case study and concluded “pregnant man established Saatchi & Saatchi’s reputation as the UK’s creative agency. The ad for the conservative party was credited by many with propelling Margaret Thatcher into power as a Prime Minister.
Saatchi & Saatchi had a policy not to meet clients. Also, they had a policy not to seek 15% compensation on billings, the traditional industry standard. The Saatchis described it as ‘dying system,” so they would charge clients 22%.
Everything went well with its ups and downs until, the board of directors under threat fired Maurice the firm’s largest shareholders in December 16, 1994. Then Charles left the agency following his brother. They started over again a month later with a new rival agency name M&C Saatchi. It quickly snapped up former Saatchi & Saatchi clients, most importantly British Airways.
By May 1996, Saatchi & Saatchi Advertising lost its status as the UK’s largest ad agency for the first time since 1988 (Goldman, p.347). But Saatchi & Saatchi survived with the Cordiant.
References:
Fallon, I. (1989). The brothers. Century Hudson
Goldman, K (1997). Conflicting Accounts. Simon & Schuster
http://www.britannica.com/
http://saatchi-saatchiplc.com/
http://www.m&saatchi.com/
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*British Airways is the world's busiest international passenger airline group; carrying more than 45m passengers in 1999 in over 1,000 flights a day to 474 scheduled destinations in 103 countries.
**Owned and controlled by the Mars family, this US confectionery giant is one of the world's biggest private companies, but also one of the most secretive. The seeds of a global empire were sown in a bitter row during the Thirties between founder Franklin Mars and his son Forrest. Now the business has interests ranging from pet food to electronics, from Uncle Ben's rice to vending machines. (Advertising Age estimate a 1998 global media spend of $1.1bn, of which $793m was outside the US, making it the world's #11 advertiser).
***Tim Bell, media director is considered to be the third brother for the Saatchis
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