Zenith edges China broker off P&G deal

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