M&C Saatchi calls time on Bangkok office

The closure falls in line with M&C Saatchi Asia-Pacific CEO Chris Jaques's plan to focus on high-margin, high-growth businesses, and withdraw where the company is weak.

Jaques joined the company at the start of 2008 with a brief to revive the London-based network's fortunes in Asia.

"Our goal is not to plant a flag in every country," said Jaques. "It is to be great in locations where we can be great. The network cannot continue to carry businesses that are not making money."

M&C Saatchi Thailand launched in October 2004 by acquiring a 60 per cent stake in Spaulding & Co. But the agency has struggled to remain competitive, posting a US$327,000 loss in revenue in 2007. Total revenue for the year was just $555,000.

The agency has 25 staff, and key clients include Ethiopian Airlines and AIA. Another role is being negotiated within the network for current MD David Howell, who joined the agency in March last year.

M&C had been in merger talks with River Orchid (Media 3 April) with a view to drawing up a rescue plan, but a deal did not materialize. "We got to the stage where we could have taken it to the next level. But there was no need," said Jaques. "Our existing relationship with River Orchid, in which they help our clients in need of service in Indochina, already works well."

Jaques's regional strategy for M&C Saatchi is to increase the agency's presence in India, China (including Hong Kong) - and potentially Indonesia, either by acquisition or start-up.

More attention will be given to "fast-growth and higher-margin businesses" such as fledgling branding consultancy, The Distillery. An "innovation consultancy", a luxury marketing operation and increased investment in direct, data and digital are also planned, revealed Jaques.

The network will also be looking to further invest in offices "in a position of real competitive strength", such as Malaysia.