TOKYO Unilever is reviewing its mammoth media buying and planning business in Japan, the third regional review in a process that is also expected to include Taiwan by the end of this year.
Currently split between Initiative for planning, and Asatsu-DK and Hakuhodo on buying, the business is estimated at approximately US$120 million.
News of the review comes amid reports that Initiative Tokyo president and Unilever business director Rob Fitzgerald is to relocate to the US to become managing director of the media agency's New York operation.
While Initiative representatives could not be reached for comment at press time, it is believed that Fitzgerald's departure may indicate a weakening hold on the agency's Unilever business.
The agency is up against MindShare and the two Japanese incumbents for the combined account.Presentations took place in Tokyo last week.
The review follows Initiative's loss of its US$75 million Unilever Indonesia business to MindShare in late 2005 (Media, 13 January).
The FMCG giant also reviewed its Australia business in recent months, retaining incumbent Universal McCann.
The wave of reviews follow the consolidation of Unilever's European media business with MindShare, and a desire for greater local market insight by the FMCG company.
"There has been a global consolidation at Unilever," said an IPG source. "This may be one of the reasons Rob is moving out."
Another source noted that, in the face of increasing competition from Procter & Gamble, along with Japanese players Kao, Lion and Shiseido, Unilever is "re-evaluating its approach to communications".
Given that international media agencies are rarely assigned media buying accounts in the country, media buying is expected to remain with either Asatsu-DK and Hakuhodo or a combination of the duo.
Unilever's Taiwan media business, also handled by Initiative, is tipped for a similar review by year-end.
"There have been three big pitches in Asia-Pacific — Australia, Indonesia and Japan. Taiwan is expected to be the fourth," said a source.
Currently split between Initiative for planning, and Asatsu-DK and Hakuhodo on buying, the business is estimated at approximately US$120 million.
News of the review comes amid reports that Initiative Tokyo president and Unilever business director Rob Fitzgerald is to relocate to the US to become managing director of the media agency's New York operation.
While Initiative representatives could not be reached for comment at press time, it is believed that Fitzgerald's departure may indicate a weakening hold on the agency's Unilever business.
The agency is up against MindShare and the two Japanese incumbents for the combined account.Presentations took place in Tokyo last week.
The review follows Initiative's loss of its US$75 million Unilever Indonesia business to MindShare in late 2005 (Media, 13 January).
The FMCG giant also reviewed its Australia business in recent months, retaining incumbent Universal McCann.
The wave of reviews follow the consolidation of Unilever's European media business with MindShare, and a desire for greater local market insight by the FMCG company.
"There has been a global consolidation at Unilever," said an IPG source. "This may be one of the reasons Rob is moving out."
Another source noted that, in the face of increasing competition from Procter & Gamble, along with Japanese players Kao, Lion and Shiseido, Unilever is "re-evaluating its approach to communications".
Given that international media agencies are rarely assigned media buying accounts in the country, media buying is expected to remain with either Asatsu-DK and Hakuhodo or a combination of the duo.
Unilever's Taiwan media business, also handled by Initiative, is tipped for a similar review by year-end.
"There have been three big pitches in Asia-Pacific — Australia, Indonesia and Japan. Taiwan is expected to be the fourth," said a source.
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