HONG KONG: Carlsberg has put its multi-million dollar Hong Kong and
China account up for pitch in a bid to consolidate with one agency.
The beer brand presently uses three agencies - M&C Saatchi for thematic
branding work in Hong Kong, BBDO for tactical and below-the-line
assignments also in Hong Kong, and TBWA in China.
A number of agencies are vying for the account, but it is believed that
Saatchi & Saatchi and Grey are the front-runners.
Carlsberg - which has used a number of agencies in the past including
Bozell, now FCB, and Leo Burnett - sold its northern China operation to
Tsingtao last year in order to focus its energy and resources on the
major markets of Hong Kong, Guangzhou and Shanghai.
Carlsberg's Hong Kong marketing manager, Wendy So, said the move to
consolidate the account with one agency was the result of a narrowing of
the demographic gap between Hong Kong and southern China.
"There are increasing similarities between the two, especially between
Hong Kong and Guangzhou so looking for cross-boundary synergies makes
sense right now.
"You can appreciate the speed at which China has opened up and
developed, particularly in recent years," So said.
One of the catalysts for change, So added, was the departure of Spencer
Wong, M&C creative head, last year for a film director's position at
Another Factory.
So described Wong as "the driving force behind the brand".
M&C's Hong Kong chief executive officer Ian Thubron said the parting of
ways with Carlsberg after three years on the account was amicable,
reflecting the fact that the agency doesn't have offices in China.
"We had a good relationship with them during the time we worked on the
account. But their communications needs have changed geographically so
we mutually agreed not to pursue the relationship any further," he
said.
The move to consolidate is seen as an attempt to gain maximum
effectiveness and efficiency amid an intensifying beer war.
Carlsberg is among the top three beer brands in Hong Kong after San
Miguel and Heineken, however, its market share is believed to havefallen
to just 10 per cent.
San Miguel is the market leader in Hong Kong, followed by Heineken, with
Carlsberg in third spot.
However, So said that because of new entrants, other major beer brands
have also experienced a fall in their market share.
"Because of escalating competition, marketing activities have shifted
from focusing on image advertising, which was the norm in the '80s and
'90s, to trade marketing, that is, sending out very specialised people
to outlets in order to try to find ways of selling more Carlsberg.
Everyone is doing that now," So said.
Meanwhile, no change is expected in media, which continues to be handled
by Zenith.
