HONG KONG: Carat Asia-Pacific is undergoing a regionwide
reorganisation after Carat International won the US$600 million
Philips global consumer media account.
The agency, which took over the regional business from Euro RSCG at the
end of last month, has formed special units in Singapore, where Philips'
regional office is located, Shanghai and Mumbai to service the
account.
Carat Asia-Pacific chief executive David Liu said it was looking for
additional manpower. "We have most of the manpower we need, but we are
still adding people at the middle level. Our biggest challenge is China
where we need extra people."
The appointment comes some two months after Euro lost the creative
account, which has been split between DDB and D'Arcy as part of a global
realignment.
The Dutch electronics giant appointed Carat after a four-month selection
process. A Philips brand marketing team visited major markets around the
world to examine the buying and planning capabilities of each agency
that pitched. In Asia, the team travelled to Singapore, Shanghai and
Mumbai.
Initiative Media, MindShare, OMD, and MediaVest also took part in the
pitch. Liu said: "We are the incumbent agency in Europe but it has only
been in the last one or two years that we have a global network to speak
about. Four years ago, we expanded into the US and Asia-Pacific
specifically to service global accounts like Philips and that strategy
is now paying us dividends."
Philips vice-president and head of global brand management, Mark Kerray,
said: "This appointment brings global benefits, such as consistent
processes among our consumer business, organisational efficiencies and
better message management."
Despite the loss, Euro said it did not have to lay off significant staff
numbers. Its Asia-Pacific chief executive Vin- cent Digonnet said the
situation was not as bad as it looked because the agency still had
Philips' below-the-line business. "More than half of Philips is
below-the-line.
Part of the relationship is gone but another part of it - direct mail,
events and sales promotion - is still there," he said.
