Procter & Gamble to rationalise media planning across Europe

Procter & Gamble is looking to rationalise its roster of media

planning agencies in Europe as part of its overall strategy to

streamline costs and revive profits.



The FMCG giant, which owns brands including Bold, Pampers and Sunny

Delight, is talking to its media agency networks from countries such as

Germany, Italy, Scandinavia and France. The review does not include the

UK.



P&G is keen to centralise its media planning functions, particularly in

the smaller European markets. Sources close to the company say it feels

that some of the media networks which it works with are not consistently

good across the European markets they work in, and therefore the level

of service is not as strong as it could be.



It is not clear if the company is looking at the possibility of

centralising into a single media planning agency, or simply cutting back

the roster of agencies it works with.



The agency networks it works with in Europe include Starcom MediaVest,

Zenith Media and MediaCom.



P&G, under its chief executive, Alan Lafley, has announced a series of

stringent cost-cutting exercises since 1999 as it sought to recover its

formerly strong market position. Lafley has been quoted as saying that

the company has a cost structure that is 20 per cent higher than its

closest competitors. P&G is looking to reduce its workforce by 15.8 per

cent worldwide and hopes to make cost savings of about dollars 600

million to dollars 700 million a year by 2004.



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