McCann, Carat grow in Japan with new strategic alliances

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