International: P&G Hands More Business to Wieden

International: P&G Hands More Business to Wieden

Author | Source: Advertising Age | Saturday, Oct 27,2007 8:25 AM

International: P&G Hands More Business to Wieden

BATAVIA, Ohio ( -- Procter & Gamble Co. has expanded its relationship with Wieden & Kennedy, handing the independent shop the interactive assignment on its global Old Spice account as well as new global assignments for its Escada fragrance and Graham Webb professional-hair-care business.

Dropping dog-food account
At the same time, however, P&G has shifted Wieden off its global Eukanuba account at the recommendation of the Portland, Ore.-based agency, a P&G spokeswoman said. Omnicom Group's global promotion and shopper-marketing agency, Integer Group, will instead now take on lead marketing-services duties globally for the brand, which will use other Omnicom agencies on a project basis.

P&G didn't disclose spending. And while Eukanuba is the company's No. 2 pet-food brand, the assignments Wieden is picking up are strategically more important and faster-growing.

P&G uses a combination of fees and sales-based incentives, not media commissions, to compensate its agencies.

Graham Webb, Escada
Eukanuba was one of the brands most affected by the nationwide pet-food recall in March, just as its Wieden-led restage was rolling out at retail. Escada, on the other hand, has been one of P&G's three fastest-growing fine-fragrance brands, helping lead a unit that has delivered double-digit sales growth in recent quarters as the company has become the world's largest fine-fragrance marketer. Graham Webb is part of a professional hair-care business that, while it has struggled since acquired as part of the Wella deal, remains a top strategic focus for P&G.

Wieden's New York office has taken the lead on Graham Webb, while its London office has taken the lead on Escada in assignments quietly handed to Wieden earlier this year.

Graham Webb previously was handled in-house, and Wieden is its first agency, the P&G spokeswoman said. Escada previously had been handled on a project basis by WPP Group's United.

Old Spice
Old Spice is by far the biggest spender of the brands involved, with U.S. measured-media spending of $60 million last year, and one of the most active P&G brands online, with internet spending last year of $1.5 million and another $1.5 million through the first half of 2007, according to TNS Media Intelligence. (Though the $1.5 million that Weiden picks up is less than Eukanuba's $8.4 million in spending last year, according to TNS.)

"We're very pleased with [Wieden] as a partner, and we remain very committed," the P&G spokeswoman said. "They've had great results [on Old Spice in particular] and they are picking up new business. But they in conjunction with the brand made the decision to move Eukanuba to Integer."

Old Spice, whose growth had slowed prior to Wieden taking the account last year, has been growing share strongly in recent months following a campaign by the agency that launched earlier this year. The Escada and Graham Webb assignments cover only creative, not media planning and buying or interactive, as is the case with Old Spice.

The rebundling approach with Wieden, while successful, won't necessarily be a model P&G expands to other brands just yet. "We've started taking one agency that we consider very good in one capability [and allowed it] to expand that to other areas," the P&G spokeswoman said. "But brand by brand we're choosing to do things that meet the business needs."

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