Coca-Cola’s flagship brand, Coke Classic, has been removed from Ogilvy’s care, as has Coke Zero, the low-calorie beverage launched in Thailand earlier this year. Ogilvy Thailand chairman Alan Couldrey confirmed the news, describing the decision of an unnamed Ogilvy staffer to handle a project for Pepsi as “unfortunate”.
Couldrey said: “It shouldn’t have happened. However, we (Ogilvy) still have Fanta (a Coca-Cola brand), and we’re confident we can keep that relationship healthy.”
Coca-Cola deals with agencies on a project by project basis, and Ogilvy had shared advertising duties with M&C Saatchi, Lowe, McCann Erickson and Leo Burnett. The client is now believed to be in discussions with McCann and an unnamed local agency.
McCann won a sampling project for Coke Zero through Momentum last month. It also picked up Project Red, the activation business for Coke Classic, which covers in-store marketing, roadshows and events. Ogilvy handled retail and activation business for Coca-Cola, but the above-the-line portion of a 360-degree assignment for OgilvyAction had dwindled.
Sister brands Fanta, Sprite and Minute Maid are outgrowing Coke Classic, and are given a larger proportion of the company’s US$6 million Thai advertising budget.
Separately, Coca-Cola is reviewing its Hong Kong media buying and planning business, putting long-term incumbent Starcom on guard. While Coca-Cola Oceania director of international media Gavin Mehrotra declined to disclose details, he confirmed that the review is taking place.
It is believed that two of Coca-Cola’s roster agencies - Universal McCann and Initiative - are pitching alongside the incumbent. The fourth, Vizeum, does not appear to be involved.
The review covers all Coca-Cola’s brands in Hong Kong, which account for about US$7 million in media spend.