Incumbent agency Saatchi & Saatchi is fighting to defend its hold on the two accounts, after previously relinquishing Xian Janssen's number one brand Motillium — which spends a monitored Rmb 200 million — and Gyno-Daktarin to DMG in April and January this year, respectively. Other agencies believed to be contesting the pitch are Ogilvy & Mather, FCB and Leo Burnett. DMG is not included on the list.
The pitch was sparked by the recent arrival of former Glaxo Smith Kline executive Michael Cheah as president at Xian Janssen, who is reportedly keen to explore other advertising options as the company's brands are looking to increase brand activity.
"Xian Janssen is probably underspending, they're not spending a lot of money compared to their competitors, which could be one of their problems," said a source with the review.
"It would be very surprising if Saatchis was able to hold onto the business. Michael (Cheah) came in a couple of months ago and his style and approach will be different from his predecessors — which doesn't bode well for the incumbent."
Presentations are underway and it is expected that a decision will be made by the end of the month.
Daktarin is the second largest Xian Janssen brand in terms of sales, raking in almost Rmb 700 million in revenue last year. According to sources, the account, along with Pevisone, would present a major opportunity for the winning agency.
However, the brands are also facing a strong challenge in China from competing local players, copycat marketing and packaging, along with strict rules governing advertising content in the pharmaceutical industry.
