Zenith will start its planning services for the client next month, and will assume full media planning and buying duties from 1 January next year.
Nestle Taiwan issued a tender in October, inviting global incumbent media agency of record Mindshare and ZenithOptimedia to submit initial presentations.
Nestle Taiwan issued a tender in October, inviting global incumbent media agency of record Mindshare and ZenithOptimedia to submit initial presentations.
Mindshare, which has been Nestle’s incumbent agency in the market since 2006, was not able to agree financial terms with the client, according to a source.
Robert Hsieh, CEO ZenithOptimedia Taiwan, commented: “There are so many ups and downs in the Taiwan market during the current recession. Advertisers have had to cut their adpend to around 15 per cent in 2009, and a further 10 per cent cut is expected in 2010.”
“Advertisers tend to pull their budgets and focus on TVC in the peak summer season from May to August, and we can get very low cost in the off-season, like in March. But there is big inflation during the peak period in the summer, which becomes a seller’s market. This is quite frustrating for media agencies,” he added.
Mindshare continues to work with Nestle in a number of Asian markets, including China, Hong Kong and Singapore. McCann Worldgroup is the company's global creative AOR.
Some of the most popular Nestle brands in the Taiwan market are its Nescafe, milk power brand Klim, and Maggi. Competitors include Uni-President and Wei Chuan Foods Corp, an affiliate of the Master Kong Holdings.
