Starcom trumps rivals in Coca-Cola China shoot-out

CHINA/HONG KONG: Coca-Cola has assigned its China media agency of record brief to Starcom MediaVest, while a review of the Hong Kong assignment is still ongoing.

The China decision - covering all the beverage giant's brands from soft drinks to juices, teas and water - came at the end of a pitch, which also included Universal McCann, Carat and incumbent for the past six years, ZenithMedia.

The brief is estimated at between US$30 million and $50 million in annual billings. Spend in the first nine months of this year hit $34 million, up 30 per cent over 2002, according to CVSC-TNS. Sources said the review consisted of an examination of systems and processes, strategic planning, rates and organisational structures. Brenda Lee, Coke China external affairs director, said the move aimed to ensure that the company had an agency with the best capabilities to achieve innovation and efficiency.

Meanwhile, sources said the pitch in Hong Kong, which also included all of Coke's brands, is being handled separately. "China is about long-term planning; however, in Hong Kong, it's about demonstrating capabilities," one said. Starcom is the buying agency, with planning split among Hakuhodo (Qoo), Universal McCann (Coke, Nescafe and Nestea), and Mediaedge:cia (Sprite, Yeung Gwong and Fanta). All four agencies are in the pitch.

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