NEWS: M&C Saatchi lands first US business

M&C Saatchi’s New York office is on the brink of its first major win with an appointment to handle Packard Bell, the US’s biggest manufacturer of home PCs.

M&C Saatchi’s New York office is on the brink of its first major win

with an appointment to handle Packard Bell, the US’s biggest

manufacturer of home PCs.



The agency would make no comment ahead of an expected formal

announcement next week. But Bill Muirhead, who runs the M&C Saatchi

operation in the US, is understood to be close to signing a contract to

secure the multi-million dollar account in the US.



The deal is expected to lead to extra business for other M&C Saatchi

offices in key markets, including the UK.



The appointment will be the prelude to Packard Bell’s first significant

move into traditional advertising. The company previously relied on co-

operative deals with retailers.



At present, Packard Bell’s US account lies dormant at Kovel Kresser and

Partners in Santa Monica, California.



The expected move to M&C Saatchi comes three months after Packard Bell

reached a settlement in the US with Compaq, which had filed a lawsuit

alleging unfair advertising. Packard Bell had launched a counter claim

for punitive damages over Compaq’s suit, which charged the company with

putting used components in PCs and selling them as new without telling

customers.



Packard Bell has enjoyed spectacular growth in the US since the 80s

through its tactic of forging relationships with department stores and

consumer electronics dealers with little or no experience of selling

PCs.



The company’s groundwork paid off as sales of home PCs boomed. In 1994

the company’s worldwide sales leaped by 120 per cent from the previous

year to an estimated dollars 3 billion.



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