Samsung will not move to WPP in India, insists Cheil

ASIA-PACIFIC: Cheil Communications India has publicly rejected the notion that Samsung's local marketing business will shift to WPP, after the holding company won a protracted global pitch to secure the Samsung Electronics global brand marketing account.

Officials from Cheil Communications in India, which handles media for Samsung Electronics, denied that the account would move to WPP. Cheil and Grey Worldwide are tasked with creative for the business.

A source elsewhere in Asia said that despite the global alignment, there has been no order from Samsung global HQ to terminate existing local market and product relationships in favour of WPP. It is believed that this business accounts for over half of Samsung's estimated US$700 million global marketing budget.

"If it comes directly from HQ, then that is fine," said the source. "But if not, we have to consider the cost-effectiveness. What is the competitive edge of J. Walter Thompson?"

Sources believe that WPP's relationship with Cheil will prove instrumental if it is to successfully secure these accounts. Similarly, while WPP agencies Wunderman and Burson-Marsteller were included in the pitch roster, there has been no movement as yet of the below-the-line and PR accounts, globally.

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