For M&M’s new Legal Q&A go to p.60


the advertising issue at the regulation table – which started for the WFA with the EU TV without Frontiers in the 1990s – is something that Burggraeve is keen to push. But he does not overlook the association’s original aim – that of driving effectiveness and efficiency. In that, he ascribes to a “financial approach” to marketing. “Why make anybody else rich?” he asks. “eBay and Google didn’t have to advertise.” “The quote that people don’t know which of their marketing works is terrible. It’s the ultimate anti- marketing statement that seals in a CEO’s mind that marketing is a nice-to-have,” he argues. “Brand health today is price premium tomorrow. You have to link marketing into the business model of the company. It’s the artist


and hunger model. If you have nothing, creativity flows; you create stories


again; you’re not lazy. I want all my marketers to be street smart and act as if it’s their own money they are spending.”


BALANCE OF COST AND VISION Of course, with competition, he agrees there has to be a minimum spend level – but that’s different from demanding maximum spend. He terms it “resourceful brand building”, which he then tries to balance with the need for innovation.


He insists a focus on cost does not


rule out the latter, and describes hearing someone say ‘but we’ve always done it like that’ as “deadly”. Nevertheless, it is his pragmatism that


comes to the surface as he argues that renovation is perhaps more important than innovation. Certainly at AB-InBev it takes more of his budget, due in large part to the heritage behind the beer brands under its roof. He does talk of having a vision – the


“The WFA is the trump card; a balance between the wisdom of


crowds and doing it for yourself”


company’s latest annual report has been given the name ‘Dream and Deliver’ – but to that he adds that pipe dreams can be avoided by ensuring that “the long-term consists of lots of short-term”. Other marketers might choose to do things differently, but his discipline has already served the WFA well. He has kept to his word that the issues troubling marketing today are too important not to make time


for, and his hands-on approach has seen him take a brand manager’s view of the association, analysing its brand and more clearly defining its mission. He has re-emphasised that knowledge sharing and public affairs are its twin pillars: “The old playbook has been thrown out; everyone is still looking for the new playbook. Going it alone might give you competitive advantage for a short while, but the WFA is a balance between the wisdom of crowds and doing it for yourself. The WFA is the trump card.”


When the spotlight will increasingly fall on regulatory concerns, it’s not something many can ignore, nor is it a battle that many can win alone. ○


www.mandmglobal.com


The legal issues in the headlines


French ‘telecoms tax’ illegal Instituted to compensate for the loss of revenue following the ban on advertising on public TV, the European Commission claims it is an administration charge incompatible with European regulation.


Spain restricts beauty ads The country’s General Law on Audiovisual Communication is a step closer to becoming law. It calls for the restriction of advertising of “slimming products, surgery procedures and beauty treatments” before 10pm.


Romania taxes unhealthy food Food and beverage companies are concerned that legislation is unclear, but Romania is set to introduce a tax on those who produce, import or process unhealthy foods.


Taiwan to ban junk food ads While the UK has announced it will continue to block fatty foods from benefiting from new product placement proposals, Taiwan aims to follow the UK and South Korean examples by drafting a bill to ban junk food ads around children’s TV programmes. It is planned to take effect next year.


Regulation for UK booze Drinks companies face being forced to put health warnings on alcohol, as 85% of drinks still fail to carry voluntary labelling messages.


Oz tobacco industry squeezed As well as hefty new taxes, the Australian government is set to ban logos from cigarette packaging. Brands are fighting it but, if successful, other countries will follow.


Online targeting in UK spotlight The Office of Fair Trading in the UK has said it supports self-regulation over behavourial targeting, but it will take an enforcement role if necessary.


M&M Q2 2010 39


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