The closure falls in line with M&C Saatchi Asia-Pacific CEO Chris Jaques’s (pictured) plan to focus on high-margin, high-growth businesses, and withdraw where the company is weak. “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 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. Revenue for the year was only $555,000. The agency has 25 staff and key clients include Ethiopian Airlines and AIA.
Jaques strategy for M&C Saatchi Asia-Pacific is to increase the agency’s presence in India, China (including Hong Kong) - and potentially Indonesia.
More attention will be given to “fast-growth and higher-margin businesses” . An “innovation consultancy”, a luxury marketing operation and increased investment in direct, data and digital are also planned, while more outlay will go into offices “in a position of competitive strength”, such as Malaysia.
Meanwhile, M&C has been removed from the shortlist for the global Tourism Australia creative account, ending the agency’s three-year relationship with the client.
