Procter & Gamble has ditched Euro RSCG Worldwide from its global
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
’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
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