Account Kimberly-Clark is worth 800 million dollars and is a large account of the WPP.
Consumer Goods Group Kimberly-Clark recently launched a global creative agency review with the aim of restructuring the agency system that is collaborating with their own brands.
The personal care giant – known for its Kleenex and Huggies brands – has been partnering with WPP group agencies such as Ogilvy and JWT. Accordingly, the reevaluation of innovative services will force WPP to re-pitch to keep this account, in the context of last year’s financial statements of WPP is very disappointing.
A Kimberly-Clark spokesperson said: “We are thoroughly re-evaluating innovative services. This is done on a regular basis, from both global and local agencies, to ensure we have the right deals. best service and capacity. “
The assessment comes in the context of rival companies like Unilever and P&G deciding to cut hundreds of millions of dollars in their marketing budgets to ensure profit growth.
Kimberly-Clark sent a request to the agency cooperating to the agency under its proposal in early January and requested a response by the end of the month, reliable sources said. The source also stated that media planing and buying, primarily led by Mindshare, have not been affected by this (although Kimberly-Clark has recently stepped up its automated advertising activities by the agency in -house group made).
In recent years, brands have been frustrated with the exclusive agency model, marketers have also signed contracts with agencies for each project, no longer have the option of long-term cooperation with any network of agencies.
Many sources close to said, Ogilvy is doing its best to maintain the existing contracts. The agency has worked with the brands Huggies, Pull-Ups and Kotex for many years, but Kimberly-Clark cut a significant number of contracts with Ogilvy in 2017. The source also said when Ogilvy was still alive. Under consideration, JWT, the agency that works with Kleenex, Cottonelle and several other Kimberly-Clark personal care product brands, was rejected. VML, the agency responsible for the digital operations, reportedly did not participate in the pitch.
Currently, Mr. Jaime Prieto, Global Brand Management President of Ogilvy, is in charge of overseeing all marketing activities at this agency for Kimberly-Clark brands. The WPP also maintains a separate division for the Kimberly-Clark accounts only. The director in charge of this division is Angela Johnson, who has 7 years of experience at Ogilvy, but Angela recently left this position and became President of mcgarrybowen in New York. There is currently no information about the replacement of this position.
According to information from Kantar Media, Kimberly-Clark spent about US $ 210 million on media activities in the US in 2016 and the same amount for the first nine months of 2017.
Independent market research firm COMvergence and international consulting firm R3 have researched and estimated Kimberly-Clark spends about $ 400 million a year on global media activities, and this figure is estimated. will increase to $ 800 million if digital activities are included.
Kim Huy / Brands Vietnam
* Source: Patrick Coffee / Adweek