The Lexus & Saatchi Team Flexible Solutions for a Global

NetworkOctober 2003

SAATCHI & SAATCHI

Table of Contents

I. Global Process OverviewII. Flexible Process Per Market

– Japan– Pan-Asia– Canada– Europe

III. 2004 LS Case StudyIV. Global Buyouts of TMS Materials

SAATCHI & SAATCHI

Lexus Global Overview

• The S&S/Team One Network has improved upon global Lexus communication, leading to:– Flexible global, regional and local

solutions – Increased information/materials sharing– Increased awareness of Lexus activities

around the world– Consistent global Lexus messaging

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Lexus Global Overview

New Lexus Global Structure• The Lexus Communications Council (LCC) allows for:

– Materials/information sharing– Consistent messaging– Face-to-face interaction of key Global Lexus Staff

New S&S Global Structure• The Regional Account Director (RAD) structure simplifies

Lexus communication:– Increased communication and materials sharing between

large and small markets

• RADs are part of the Toyota Worldwide Executive Board (TWEB)– TWEB meets regularly to discuss major Lexus issues

The new structure puts us in a position to make Lexus more global.

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Lexus Global - A Flexible Communications Structure

TMAP

Team One

OMD

S&S Japan

Hotai

TMCL TMCA TCI TGB TMME

S&S Japan RAD

S&S Asia RAD

TMS

S&S Europe

RAD

Borneo/ Crown

S&S Europe Offices: Estonia, France, Hungary, Latvia, Lithuania, Poland

Estonia, France, Hungary, Latvia, Lithuania, Poland

Thai

TMNZ

S&S Thai

S&S Taiwan

S&S Sing

S&S HK

S&S Aus

S&S NZ

S&S Canada

S&S UK

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Lexus/OMD Process

• OMD works with Lexus distributors to provide materials.

• OMD works with S&S Japan on most Lexus initiatives.

Saatchi Network Process• Japan RAD works out of Japan office,

and directly with OMD.• Japan RAD communicates with other

RADs and S&S offices in worldwide.• S&S Japan/Team One in communication

to ensure information/materials are delivered to OMD: – Weekly conference calls/status reports– Daily email communication– Monthly face-to-face meetings with

RAD/Team One

Global Process - OMD

S&S Japan

S&S JapanRAD

OMD

S&S Asia S&S Euro

Team One

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Global Process - TMAP

Lexus Process• TMAP works with Asia Distributors on key

Lexus initiatives (model launches, etc.) and brand planning.

• TMAP works with S&S Singapore on Lexus Brand creative, strategy and brand planning.

Saatchi Network Process• Asia RAD works out of Singapore office.• S&S Singapore/Team One are in

communication to ensure information/materials are delivered to TMAP:

– Weekly conference calls/status reports– Daily email communication– Monthly face-to-face meetings with RAD/Team

One

• S&S Singapore works with Team One to purchase images and TVCs for Asia region:

– 2002/2003 TVCs: Brand “Anthem”, IS “5th and Elm”, ES “Flamenco” and “Windmill”, SC “Bike”, Minority Report

– 2002/2003 Images: IS, ES, SC, LS

TMAP

S&S S’pore

S&S Taiwan

Hotai

S&S HK

TMCL

S&S Asia RAD

Borneo/ Crown

S&S Thailan

d

Thailand

Team One

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Global Process – Rest of Asia

Lexus Process• Lexus Asia Distributors (Hotai,

Thailand, Borneo, TMCL) work with TMAP for Lexus brand planning and key initiatives.

• Lexus Asia Distributors work with their local S&S offices on Lexus creative, strategy and brand planning.

Saatchi Network Process

• Asia RAD weekly/monthly visits to S&S Asia offices and Lexus Distributors.

• S&S Asia Offices/Team One are in communication to ensure information/materials are delivered to local markets:– Weekly conference calls/status reports– Daily email communication– Monthly face-to-face meetings with

RAD/Team One

TMAP

S&S S’pore

S&S Taiwan

Hotai

S&S HK

TMCL

S&S Asia RAD

Borneo/ Crown

S&S Thailan

d

Thailand

Team One

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Global Process – TMCA

Lexus Process• TMCA and TMAP work together to share

costs/information:– Yearly conferences– TMAP covers Australia when purchasing

images/TVCs from the U.S.

• TMCA works with S&S Australia for all advertising.

Saatchi Network Process• Asia RAD in contact with S&S to maintain flow

of Lexus information.• S&S Australia/Team One in communication to

ensure information/materials are delivered to TMCA:– Weekly conference calls/status reports– Daily email communication– Monthly face-to-face meetings with RAD/Team

One

TMAP

S&S Sydney

TMCA

S&S Asia RAD

Team One

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Global Process – TMNZ

Lexus Process• TMNZ works with S&S NZ for all Lexus

activities.

Saatchi Network Process• Asia RAD contact with S&S to maintain flow

of Lexus information.• S&S NZ/Team One in communication to

ensure information/materials are delivered to TMNZ:– Monthly conference calls/status reports– Weekly email communication– Monthly face-to-face meetings with

RAD/Team One

TMNZ

S&S NZ

S&S Asia RAD

Team One

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Global Process - TCI

Lexus Process• TCI manages Lexus business for Canada.• TCI works with Dentsu for ATL Lexus advertising.• TCI works with S&S/Team One on some strategic

planning and strategy initiatives:– Conference calls with TCI to review planning

and strategy on model launches• TCI works with S&S/Team One on brochures.

Saatchi Network Process• S&S Canada works with Team One to service the

TCI brochure business. • TCI picks up TMS brochure format/images,

leading to consistent brochure format for all of N. America.– Account Manager at Team One works directly

with S&S Toronto team on a year-round basis.• Team One communicates with DCC regularly to

provide Lexus materials: images/TVCs.• Team One initiated yearly meeting with Dentsu

and TCI to review Lexus work.– Will occur before Lexus U.S. Dealer Meeting

S&S Canada

TCI

Team One

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Global Process - TGB

Lexus Process• TGB works to service the UK

market.– Communication and collaboration

on some initiatives (i.e. model launches) with TMME.

• TGB works solely with S&S UK.

Saatchi Network Process• Europe RAD works out of

France office, and with S&S UK to maintain flow of information.

• S&S UK/Team One in communication to ensure information/materials are delivered to TGB:

– Weekly conference calls/status reports

– Daily email communication– Monthly face-to-face meetings with

Europe RAD/Team One

TGB TMME

S&S UK

S&S Europe RAD

S&S Europe Offices: Estonia, France, Hungary, Latvia, Lithuania,

Poland

Estonia, France, Hungary, Latvia, Lithuania, Poland

Team One

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Global Process - TMMELexus Process• TMME oversees Lexus Europe countries

except TGB.• Each country, in addition to being part

of the TMME network, has its own local agency, many of them S&S agencies.

• TMME currently works with S&S UK on all Lexus projects.

Saatchi Network Process• Europe RAD (from France office) in

contact with all S&S Europe offices to maintain flow of information.

• S&S Europe offices/Team One in communication to ensure information/materials are delivered to local Lexus distributors:

– Weekly conference calls/status reports– Daily email communication– Monthly face-to-face meetings with

Europe RAD/Team One• S&S/Team One currently pitching TMME

business. TMME to provide brief in mid-October, and S&S/Team One to answer brief by early November.

TGB TMME

S&S UK

S&S Europe RAD

S&S Europe Offices: Estonia, France, Hungary, Latvia, Lithuania,

Poland

Estonia, France, Hungary, Latvia, Lithuania, Poland

Team One

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Global Process – Japan Issue

How should OMD, Japan Domestic and S&S Japan communicate?

S&S Japan

S&S JapanRAD

OMD

S&S Asia S&S Euro

Team One

DAMD

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LS 430 Launch Case Study

• The 2004 LS Launch is a success model for global communication and materials sharing:– LS materials from TMS and OMD were used in most

Lexus markets where S&S maintains Lexus business (except UK/TMME, who created their own launch materials).

– All markets were able to launch the LS work on the same date as the U.S. due to S&S/Team One teams working together daily to coordinate materials and information.

TMS “Bridge” and “Dam” Creative• TV currently running in: Taiwan, Canada• TV will run in: TMAP Markets, Australia• “Dam” print appearing in: TMAP markets, Canada

TMS Images Purchased for WW Rights by OMD• Distributed by OMD to all Lexus global markets• Images running in: Australia, Hong Kong, Singapore, Taiwan

OMD “Badge”• TV and Print Campaign running in: Korea, GCC

LS Case Study – Flexible Launch

Markets Agency

Global

Regional

Local

• USA• Australia • China• Canada• Taiwan• Singapore

• Team One

• GCC• Korea

• S&S Japan/ Team One

• Australia• China• Europe• Taiwan

• S&S Australia• S&S HK• S&S UK• S&S Taiwan

“Bridge” and “Dam” TV

“Dam” Print

Brochure Images

“Badge” Print

Europe/UK PrintChina Print

Australia Print Taiwan Print

“Badge” TV