Creating a new legal entity for its existing below the line divisions, Leo Burnett has brought in an international Burnett brand - Black Pencil. The agency has floated a separate company- Black Pencil Advertising Pvt Ltd to represent all the divisions for its non-conventional advertising business.
In effect, Black Pencil would also serve as the umbrella brand for its existing divisions - Leo Entertainment, Leo Activation and Leo Stage.
Mr Aniruddha Banerjee, Executive Director, Leo Burnett, said: Black Pencil is not a mainline agency and we are treating it as a separate legal company in India. It will represent the 360-degree space that will not cover mainline advertising and media.
Besides, the agency has also incorporated a new division - Leo Express - to handle studio production and artwork. This division has been floated to service smaller local clients who have low investments and may not necessarily belong to the organised sector.
Apart from setting a division for studio production, the agency is also looking at setting up another division for public relations. "We are looking at having new set up for doing PR for clients as well,'' states Mr Banerjee. Both these new divisions are expected to come under the Black Pencil umbrella.
Currently, it is Leo Activation, in-charge of events and promotions, which has the largest share of the non-conventional advertising pie. With clients such as Indian Oil and Fiat, Leo Activation has helped in launching brands such as Fiat's Petra.
Black Pencil would be the third company under the Burnett fold. Orchard Advertising in Bangalore is the second agency of Leo Burnett, primarily to handle conflicting businesses.
According to industry analysts, it is always better to have a separate company for the below the line advertising business, instead of existing as independent divisions within the mainline agency. "It helps at the time of pitching, since most of the clients are temporary in nature,'' claim industry professionals.