P&G ousts Euro in worldwide switch

Procter & Gamble has ditched Euro RSCG Worldwide from its global agency roster.

Procter & Gamble has ditched Euro RSCG Worldwide from its global

agency roster.



The agency network will lose more than dollars 100 million of business

as a result of the decision, which brings to an end its 43-year

relationship with the fmcg giant.



P&G will transfer the five brands handled by Euro into its remaining

four worldwide agency networks, Saatchi & Saatchi, Grey, Leo Burnett and

DMB&B.



’These moves are part of an ongoing effort to simplify the agency

line-up for our brands,’ Denis Beausejour, P&G’s vice-president of

global marketing, said in a statement issued on Wednesday.



’The decision is especially difficult because Euro RSCG has been a good

agency partner for many years but, unfortunately, we have never reached

a critical mass of business with them.’



The move will take effect on 1 April. After that, Saatchi & Saatchi will

handle Head & Shoulders shampoo in North America and Old Spice deodorant

and aftershave in North America and Europe. Grey picks up Mr Clean

detergent in the US, while Leo Burnett gets the Metamucil range of

laxative and dietary supplements in the US and Europe and assumes global

responsibility for the brand. The Clearasil brand of skin products has

yet to be assigned.



The move is in keeping with P&G’s Organisation 2005 strategy, which aims

to align global brands with global agencies.



Euro RSCG has seen its P&G billings shrink in the past few years and,

last year, it lost the dollars 75 million Vidal Sassoon creative account

to Leo Burnett. P&G brands account for less than 1 per cent of Euro

RSCG’s billings in Europe and around 3 per cent in North America. Worst

affected by the move will be Euro RSCG Tatham in Chicago, which takes

around 30 per cent of its billings from P&G brands.



P&G will retain Jordan McGrath Case & Partners, the New York agency Euro

RSCG acquired last week, as regional agency for several brands in North

America.



Bob Schmetterer, chief executive of Euro RSCG, said: ’While no agency

likes to lose business, we have anticipated this move for some time. In

reality, these moves will allow us to compete more effectively on a

global basis.’



Perspective, p2.



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