The shift follows Initiative’s 2006 loss of Unilever’s mammoth planning business to MindShare in the country.
A Peugeot spokesman declined to comment on the move, saying “it was simply part of the regular review process”. However, sources indicated to Media the decision to pitch the business was sparked by senior account changes at Initiative, along with the departure last year of Tokyo president Rob Fitzgerald to the US.
Current GM Ako Yamagata denied this was the case.
The move follows Peugeot’s decision last year to switch its creative from Hakuhodo to McCann Erickson. Initiative did not contest this pitch, but it is believed Universal McCann was involved.
“We actually decided to recommend to Peugeot that they should seek another agency, but we have been continuing to assist them since our contract officially ended in December,” said Yamagata.
An agency source said Peugeot’s spend on the business with Initiative did not meet initial projections, making it difficult for the agency to maintain and service the account.
Although Yamagata insisted the loss would not result in redundancies for the agency’s Japan operation, sources noted that it was a significant blow for the shop.
Starcom Japan could not be reached for comment at press time.
