Y&R resigns Carphone Warehouse

By EMMA HALL, campaignlive.co.uk, Friday, 03 September 1999 12:00AM

Rainey Kelly Campbell Roalfe/Y&R has resigned the pounds 3 million Carphone Warehouse business it won only last week.

Rainey Kelly Campbell Roalfe/Y&R has resigned the pounds 3 million

Carphone Warehouse business it won only last week.



The split is a result of client conflict thrown up by the merger between

Rainey Kelly and Young & Rubicam, which was announced in Campaign last

week.



Virgin Group, one of Rainey Kelly’s most loyal clients, is launching its

own mobile phone business later this year. Virgin Mobile will sell its

phones direct and on the high street, putting the newcomer in open

competition with Carphone Warehouse.



Y&R won the task of developing a heavyweight Christmas TV campaign last

week after a pitch against Lowe Howard-Spink, Duckworth Finn Grubb

Waters and the Brasserie.



Toby Hoare, the Y&R chief executive who led the pitch, informed Charles

Dunstone, founder of Carphone Warehouse, about the proposed merger with

Rainey Kelly at the time of Y&R’s appointment.



It is unlikely that Tandy, the Carphone Warehouse-owned electrical

retailer and a long-standing client of Y&R, will be affected by the

split. Carphone Warehouse bought Tandy from its US parent, InterTan, in

January.



Virgin Mobile, a joint project with One2One, plans to offer customers

the facility to view their Virgin bank balances, check the performance

of their Virgin PEP and order Virgin plane or train tickets, Virgin

cosmetics or Virgin jeans at the touch of a button. Virgin also promises

a straightforward and reasonable pricing structure and will give away

free headsets.



Virgin Group spends more than pounds 20 million through Rainey

Kelly/Y&R. Rainey Kelly won Virgin Atlantic in 1994 and has since added

Virgin Cola, Virgin Trains and Virgin Direct to its roster.



The Virgin relationship threw up another conflict in the merger -

between Virgin Atlantic and United Airlines - which has been resolved by

handling the two accounts from separate offices.



No-one at Y&R was prepared to comment on the split.



This article was first published on campaignlive.co.uk

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