World: New-business analysis - FMCG media reviews bolster global new business

There's been a key change in how global new business is won. Lucy Aitken reports.

Group pitches are in vogue. First it was HSBC and Nestle, then Samsung followed suit. So an eye-watering $4.6 billion of new business will be decided at group, not network, level in the next few weeks.

The benefits of group-led pitches to clients are clear in a world where buzzwords such as "integration" and "efficiencies of scale" are bandied around board-rooms.

The other characteristic of this month's table is the cluster of huge media reviews, with Procter & Gamble's being typically titanic.

The table includes accounts worth at least $50 million, though several pitches are underway for less substantial pieces of business. In the US, many big agencies are chasing small accounts, which, in real terms, translate into negligible income.

Alongside government accounts and charities, telecoms are lively sectors in Europe right now. McCann's $300 million Verizon Wireless win and Fallon's BT win prove just what big spenders telecoms have become. And UK retailers are tipped for movement in the coming months, with question-marks hanging over certain supermarkets' agency arrangements.

In the US, Safeway selected Berlin Cameron/Red Cell without a pitch following project work by the agency. Speculation over what Safeway will do in the UK, following its takeover by Morrisons, is likely to intensify.

ACCOUNTS UNDER REVIEW

CLIENT / TASK BUDGET SHORTLIST INCUMBENT DECISION CON-

dollars SULTANT

Procter & Gamble

Media planning, 2.5bn MediaCom, MediaCom, July None

North America Starcom Starcom

MediaVest MediaVest

Nestle

Media planning 1.5bn IPG, WPP, Various, July n/s

and buying, Publicis including

global MindShare,

OMD,

Universal

McCann

HSBC

Creative and IPG, Lowe,

media, global 600m Omnicom, Zenith- May None

WPP Optimedia

Deutsche Telekom

Media planning 425m Universal MediaCom,

and buying, McCann, Universal May None

five European MediaCom, McCann

markets MindShare

Samsung

Creative, 400m IPG, WPP Foote Cone June None

global Omnicom & Belding

(IPG)

SC Johnson & Son

Media buying, 350m Initiative, Initiative, May None

global Zenith, Zenith,

(broadcast Universal Universal

only) McCann McCann

Toys 'R' Us

Creative, US 116m Leo Burnett Leo Burnett

Chicago, Chicago May None

undisclosed

ACCOUNTS WON

CLIENT / TASK BUDGET WINNER SHORTLIST INCUMBENT

American Express

Media, global 375m MindShare MindShare, MindShare

Carat,

Initiative

Verizon Wireless

Creative, US 300m McCann McCann Lowe

Erickson Erickson,

Arnold

Microsoft

CRM/direct, 250m MRM Partners/ Undisclosed Several

global McCann World agencies

Group

Old Navy

Creative, US 180m Deutsch/LA Deutsch/LA, Previously

JWT, Euro in-house

RSCG

Safeway

Creative, US 95m Berlin n/a Berlin Cameron

Cameron joins Dailey

/Red Cell Associates

(IPG) on

roster

Air France

Media, 40 80m MPG MPG, MPG

countries Initiative,

OMD, Carat

BT Internet (broad-

and narrowband)

Creative, UK 52m Fallon n/a AMV BBDO -

broadband

CHI -

narrowband

All budgets are estimates.

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