The opening of China’s economy has ushered in a wide array of businesses, multinational companies and brands that need professionals to help the generate publicity. Ketchum Inc. is among one of the many established entities trying to introduce foreign newcomers to the Chinese people. General Manager Penny Burgess talks to Amy Cheung of The China Perspective about how to transform guanxi into modern public relations.

The China Perspective: Can you share with us how Ketchum can help a client?

Penny Burgess: Ketchum is a below-the-line public relations agency, providing consultancy on brands, corporate and technology communications. We are currently expanding our Food & Nutrition services as a specialty in China. Our goal is to expand existing client base, which includes McDonalds, Norwegian Salmon and other food-related brands. This is similar to our Healthcare business. We are working on bringing in relevant expertise at the moment. We are not directly involved with advertising or street campaigns, but we do offer advice on how they can be leveraged as part of an overall communications campaign.

TCP: What is the current PR climate in the Mainland?

PB: The public relations industry is developing rapidly. Companies are now more sophisticated in employing public relations in their marketing and communications mix. In the past, companies advocated a more above-the-line, stand alone advertising campaigns to promote themselves. Increasingly now, however, they are adopting more sustained integrated programs with a focus on brand-building.

TCP: How is China different from other Asian markets that Ketchum operates in?

PB: The biggest difference lies with the media landscape and the environment for public relations activities. China is a huge market to target geographically, and it is also politically and socially sensitive, which requires caution. Many publications are now required to be financially independent, which is also driving change in how they develop stories. Nonetheless, media standards and diversity are improving. There is an increase in interest in lifestyle brands and business development as well as environmental stories.

TCP: How does Ketchum see itself in the China market?

PB: PR is a people business. We place strong emphasis on our ability to provide constant training and mentoring to develop our team. At the same time, we are strong in creating integrated communication programs. We make sure that each of our offices is equipped with personnel that can deliver value to our clients and influence relevant relationships at a local level. Our Shanghai office, for example, has consultants whom possess local expertise and understand the local Shanghainese dialect. All of this enables us to focus on our core business—to help clients enter and grow in the Chinese market.

TCP: Is Ketchum's client base becoming more local?

PB: Our client base is mainly composed of multinational companies. This is because these companies primarily have the budget to pay for communication services. Our Hong Kong office is now involved in preparing Mainland companies for overseas listings, in a way, helping export companies overseas. This will be the direction of our Mainland offices to in the long run.

TCP: Can you give me a successful PR campaign Ketchum has engaged in?

PB: Our collaboration with McDonalds is an example of a great partnership and together we have worked to develop ways to help McDonalds engage with the local media to ensure a sustained and open dialogue.

This year alone we have launched many major industry-leading initiatives for the company, such as McDonald’s first drive-thru window in China, the company’s FIFA player escort program, and the recent launch of Ronald McDonald House Charities that sets a new model for partnership with CSR activities in China. In addition, Ketchum was instrumental in McDonalds entering into a partnership with the Chinese Cuisine Association earlier this year and also helping to launch McDonald’s Mom’s panel. All the campaigns have been fully integrated and link back to our overall strategy, and consequently, have made a significant impact on the company’s brand development in China.

TCP: Does Ketchum follow the "hong bao" system? If not, how do you enable PR writings appear in press?

PB: Hong Bao is an age-old system. As an international PR agency, we have the responsibility to stand against it. The reality is we offer small transport allowances for press when they attend our PR activities. However, we do not pay for coverage since our clients need to uphold the same ethical standards across all the markets they operate in. Concerning how we influence press to provide coverage, it’s the same as in any other country. It all comes down to the strength of the story, its relevancy to a publication’s readers and having good media relationships. .

TCP: What is your business expansion plan in the near future?

PB: At present, we have no plans to open other offices in the Mainland. We want to increase the depth of specialized consultative services through training up and recruiting more focused experts instead of generalists.

TCP: Many reports said that China lacks skilled PR workforce. How does Ketchum recruit quality human resources to support its development?

PB: We have a stable turnover rate. Identifying, tracking and retaining talents are a common problem that we all face. It is hard for the young generation not to switch jobs when they are so frequently approached by headhunters offering substantial salary increases. However, money is only one factor in their decisions and we to retain and attract the best people we need to constantly improve our training and provide clear career paths.