SHANGHAI: Almost two years after losing the Procter & Gamble buying
account to Starcom's Quest Media, Zenith Media has retaken the
assignment, estimated to be worth around US$100 million
annually.
The account was put up for pitch after P&G decided to strengthen its
control of the buying process - previously the responsibility of local
broker Deluxe International - as it slashed its marketing communications
budget by a third from US$150 million. The cutback mirrored the
FMCG giant's global spending reductions, taken in reaction to the
faltering world economy.
The review focused on the capabilities of agencies which participated in
the pitch to deliver media buys in accordance with spot plans.
Zenith is now in charge of buying and negotiations, while Starcom
retains scheduling and some planning work.
Zenith Asia-Pacific chief executive officer Antony Young declined to
provide details of the brief, although he said: "To me, this is a major
triumph for the agency. We've really come back and we're relishing
working closer with P&G in China."
However, sources said they were sceptical that the new arrangement would
represent a structural improvement for P&G. "Before it was Starcom going
through a local agency. Now it's Starcom going through one of its major
competitors. Competition helps to bring out the best in us, but it could
get messy," a rival agency source said.
Nevertheless, sources said one point was undeniable -that Zenith was
back in P&G's good books after the agency was unceremoniously bumped off
from the China roster in 1999 following eight years of service. "What
everyone will be watching is whether Zenith will be able to regain the
entire P&G China agency of record assignment within the next year or
so," another source commented.
