McCann-Erickson Japan has established a joint venture company with
MIK Planning.
The new company, called Momentum MIK, continues to focus on sales
promotion, event development and implementation.
Momentum MIK is 75 per cent owned by McCann and 25 per cent by MIK
Planning, with projected annual billings of five billion yen (US$48 million).
McCann VP Hiroshi Namiki has been named the president of Momentum MIK,
and members of the board of directors were elected from both
companies.
McCann's sales promotion specialist Momentum Communications Development
Center was spun off to form the new venture company.
"In a mature consumer market, where the competition among corporations
and product categories is becoming more severe, and due to the emergence
of totally new technologies, the market paradigm is changing fast," said
Mr Namiki.
"We must become more specialised and sophisticated in order to respond
to the demanding needs of our clients and provide them with effective
solutions."
Meanwhile, Carat has acquired a majority stake in Tokyo-based Strategic
Planners International (SPI), an independent media planning company
founded by former Bates executive Kim Walker. The new company will be
renamed Carat SPI KK.
"We aim to marry our unique, Japanese experience, with the immense
international resources of Carat to deliver global best practices to our
clients," said Mr Walker, president of Carat SPI.
Some of Carat SPI's major clients include: Adidas, Club Med, Disney,
Fujitsu, Nippon Lever, Warner Lambert and Volkswagen.
Established in 1995, the agency has made profits of about Y150 million
(US$1.4 million) in the media business.
"Even with this deal, we remain the only true media independent, as we
have no connection to a creative agency, so 100 per cent of our focus is
on delivering business advantage through the efficient and effective use
of media," said Mr Walker.
"We will not undermine the unique positioning of Carat SPI, but on the
other hand, we will be seeking ways to expand our presence in the market
through cooperation with major Japanese agencies or other innovative
means," said Mr Douglas Flynn, CEO of Aegis Plc, Carat's holding
company.
"We think a number of recent investments by foreign advertising
companies in Japan have been rash, politically awkward and
unprofitable.
"As the second largest advertising market in the world, we have to treat
this issue (business expansion) very seriously, but we will not rush
into it."
