The business, with estimated billings of US$17 million a year is held by Diamond Ad, which is 80 per cent owned by WPP and is supported by MindShare in the pitch.
Grape, a breakaway agency from Diamond Ad, handles Korean creative for some Unilever brands. It signed an affiliate agreement with Interpublic agency Lowe at the end of 2002 and will be supported by Initiative in the pitch. The pitch was called as part of a review every four years.
MindShare Southeast Asia CEO and Asia-Pacific director of multinational clients Nick Waters said Unilever needed to find new ways to connect with consumers in a static Korean market. "It's quite tough for a foreign company trying to sell products in that environment," he said.
Unilever has failed to make serious inroads into Korea with a marketing spend overshadowed by arch-rival Procter & Gamble and local player LG Household.
Meanwhile, Unilever has centralised its media business in Indonesia, transferring planning responsibilities for brands such as Sunsilk, Dove, Ponds and Walls from MindShare to Initiative, which already handles buying and some planning duties. There was no pitch prior to the shift.
Unilever calls on club agencies to pitch Korea brief
Unilever's club agencies, Initiative and MindShare, are vying for its media brief in Korea, through their local affiliates.