The decision means that Zenith is left only with the strategic planning assignment for about 70 per cent of P&G's brands in China. P&G's remaining brands are handled by Starcom and MediaCom.
The appointment, which is effective immediately, expands Starcom's link with P&G. Starcom also currently handles tactical planning involving media optimisation work, scheduling, invoicing and billing. It also buys the media in conjunction with P&G. Sources said that there was no pitch prior to the business shifting. In 2001 (Media, October 26), when Zenith retook the buying brief from Starcom's Quest Media, sources had predicted the arrangement of Starcom going through a major competitor would be messy.
A source said: "P&G is always looking for efficiencies on the way it works. But it could be that having one agency to look after buying and another for negotiation created undue tension. I think that was apparent over time."
Starcom is now expected to hire additional staff to handle the additional brief. The entire P&G China account is estimated at about US$200 million.