Hurdle for MindShare in Unilever Indo pitch

Unilever Indonesia is reaching the close of its six-month-long media buying and planning review, with MindShare's existing Nestlé relationship reportedly proving a major stumbling block in the Group M agency's efforts to secure the massive account.

Unilever, which dominates Indonesia's FMCG markets, is tendering its media business for the first time, with both MindShare and long-term incumbent Initiative in the fray. According to Nick Waters, MindShare's Southeast Asia chief executive officer and regional director of multinational clients, the agency's ability to demonstrate that it can handle both Unilever and Nestlé to the satisfaction of both clients is likely to prove critical. MindShare operates both accounts in a number of countries, including Malaysia, Thailand and the UK.

"Both Nestlé and Unilever are sensitive about each other, but we operate both assignments alongside in a number of countries," said Waters. "We have very strict confidentiality protection protocols." Waters said that a decision by Unilever was imminent, with the review covering all media buying and planning for all of its brands in the country. Adex is estimated at US$75 million.

While MindShare is able to use sister Group M agencies to avoid conflicts in other markets, Waters noted that option was not available in Indonesia as MindShare -- which already handles Nestlé -- was the only Group M agency invited to tender.

The review comes with Unilever Indonesia expecting increasing competition from both large local players such as Wings, and international rival Procter & Gamble.

In Thailand, meanwhile, Nestlé recently awarded its media buying and planning business to Group M, as part of its global review process. Group M previously handled the group's ice-cream and Milo brands.

Globally, Unilever has completed its creative agency review for its personal detergent line, with Lowe Worldwide retaining the business in Asia, South America and Africa. Aimed at consolidating the company's roster, the pitch was meant to name just one agency from the three that participated. BBH picked up most of the markets in Europe from JWT and a small number from Lowe.

"We're delighted to continue working with Unilever across the region," said Tony Wright, president and CEO of Lowe Worldwide. "It is a testament to the abilities and talent of our people." Additional reporting by James Murphy