Coca-Cola has surprised the communications industry yet again by
realigning its global account with IPG agency networks McCann-Erickson
and Lowe Lintas & Partners.
The move, which comes about two months after Coke appointed IPG as its
worldwide brand steward, is seen as an attempt to achieve brand
consistency and cost-efficiency.
While McCann already has the account in a number of major regional
markets - Hong Kong, Korea and the Philippines - the decision means that
it will also get the prized China market, worth between USdollars 12
million and USdollars 25 million in billings annually. Over the past 15
months, Leo Burnett was responsible for thematic advertising in China
although D'Arcy was the AOR.
Agencies that lost out in the region expressed disappointment over the
decision. They also believed that the "think local, act local" policy of
Coke CEO Doug Daft was being reversed.
However, a senior McCann executive denied this because agency offices in
each market "has significant local capabilities", which would allow for
effective local execution within a global framework for the brand.
