Gateway Case Study Write Up

Analyze Gateway’s decisions to change advertising agencies so many times over the past
nine years. Identify and discuss specific factors that may have led to each decision to
change agencies.
- Up until 1993, Gateway utilized their in-house creative department and focused only on
print advertising. However, as the company grew, it decided to add TV ads to the media
mix. To do so, they hired an outside agency, Carmichael Lynch, to work with its in-house
advertising department. This relationship was established likely because outside agencies
usually have more highly skilled personnel, creative talent, and marketing
communication specialists, as well can provide a broader perspective of the industry.
After four years, Gateway decided to move their account to D’Arcy Masius Benton &
Bowles. The decision to hire them was made because Gateway wanted a larger agency to
focus on international sales. However, this didn’t work out because DMB&B had a
different direction they wanted to go with the brand. Gateway then made the decision
bring advertising back in-house, while using a small agency called, DiMassimo Brand
Advertising, to handle its creative work for TV advertising. CEO Ted Waitt also hired his
friend and director, Henry Corra, to assist, which highlights the importance of personal
relationships. This lasted until a change in leadership from Ted Waitt to Jeff Weitzen
resulted in the hiring of McCann Erickson Worldwide. This decision was made along
with a change in Gateway’s overall corporate strategy. However, McCann Erickson’s
services ended after Weitzen resigned and Waitt resumed control. Waitt went on to rehire
Corra and work on a project basis with Siltanen/Keehn. This decision was probably made
because of the financial loss during the time Weitzen was CEO and because McCann had
garnered the Microsoft account. Since Gateway had no formal or contractual relationship
with them, they then hired the Arnell Group. The goal here was to change Gateway’s
positioning and image from folksy to hip, specifically for the holiday season. In the new
year, Gateway ended that partnership and moved to Leo Burnett & Starlink for the
majority of 2003. The Vice President of Consumer Marketing at this time was probably
the determining factor in this move because he was a former employee of Leo Burnett.
However, Gateway, along with their new CEO, then jumped from Grey San Fransciso &
Arc North America to Crispin Porter Bogusky + Aegis Group’s Carat in 2004, but they
ended up resigning because of a disagreement in brand image. Which is Gateway ended
up at the Woo Agency in 2005.
Discuss how Gateway’s frequent agency switching has affected the company’s branding
and positioning efforts. What recommendations would you make to Gateway management
regarding its agency switching and its impact on the company?
- Gateway used ten different advertising campaigns during the time that they were
switching from agency to agency, with most lasting less than a year. This has made it
difficult for the company to establish a clear identity and image. Despite this, Gateway
has always tried to position itself as a company that assists its customers in understanding
technology and how it can help them in their daily lives. Since these changes in
positioning have come about following changes in overall corporate strategy it makes
sense that the company would develop a new advertising tagline to represent each new
strategic direction. However, it will be important for Gateway to settle on an advertising
theme and stay with one tagline. This is normal for companies experiencing declining
sales and profits, in hopes of finding an approach that will resonate with consumers. It is
likely that Gateway will always strive stick to their value proposition: no matter how
much technology evolves in the future, it is of little value unless it can do something to
improve the user's life today.
If you were an executive at an advertising agency and Gateway’s decided to switch agencies
again, would you advise your account development team to pursue the company’s
business? Why or why not?
- I would not pursue Gateway because taking on such a large account would require a great
deal of investment, time and effort in order to become familiar with the company, the
industry, their marketing strategy, and their customers. Since, Gateway has a history of
switching agency every year or so and a good return on investment may not be seen for
several years, this would end up in a loss for the agency.

Gateway Case Study Write Up

Uploaded by

Copyright:

Available Formats

Gateway Case Study Write Up

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Gateway Case Study Write Up

Uploaded by

Copyright:

Available Formats

Analyze Gateway’s decisions to change advertising agencies so many times over the past

You might also like