In an initiative led by R3, the shift follows the formation of the integrated, 40-person unit late last year to drive the Coca-Cola brand in the run-up to the 2008 Olympics (Media, 3 November 2006).
Headed by managing director Wasim Basir and chief creative officer Bere Mitchell, Red Lounge drew on talent from key agency partners in China - McCann Erickson, Starcom, Wwwins, Heartland and McCann Worldgroup units, with 35 new Leo Burnett employees sourced from all over the world.
According to Ilan Sobel, vice-president and general manager, strategic marketing and innovation for China at Coca-Cola, Red Lounge is an independent unit to give brand Coca-Cola integrated marketing support across both above- and below-the-line media.
"After careful assessment, we decided that Leo Burnett was the most appropriate partner to take on board an initiative of such importance to Coca-Cola China."
"We felt we needed to change the way we work with agency partners. (Red Lounge) is a new agency approach that will bring enormous collaboration and integration underneath one roof," said Sobel, adding that talent would continue to be employed by their own agencies to ensure independence. "It is important for us to create independence and tension between us and our agencies, as this leads to better ideas and better thinking."
The initiative, which will see Burnett take control over Coke creative, may be rolled out in other global markets, added Sobel.
In a separate development, Sobel is tipped to leave his post at Coke due to personal reasons. While the search for a replacement is underway, Sobel noted that his departure would not affect the development of Red Lounge.
A spokesperson for McCann, meanwhile, noted in a statement: "The start-up of Red Lounge in 2006 meant that McCann in China made adjustments to its financial and operational forecasts for 2006. There is no impact on McCann's forecasts for 2007."
