Clients conflicts and global reviews are proving to be bad news for McCann Erickson. Close on the heels of having to pull out of Reckitt Benckiser’s $680-million global creative review, which began a few months ago, the agency is on the verge of losing another blue-chip client, Gillette.
Procter & Gamble is shifting the Gillette overseas business, worth in excess of $20 million, that has been with McCann Erickson, to Omnicom Group’s BBDO. The account shift, it is learnt, will become effective from August 15, 2006, when the contract with McCann ends.
With BBDO wresting the Gillette account, the fallout in India is not far off. Top-level sources in RK Swamy/BBDO, when contacted by exchange4media, confirmed on Sunday, on condition of anonymity, that the “process for the change-over has been going on for a month”.
A top management source in McCann India, when contacted, also confirmed the development. He said that the process of handing over to RK Swamy/BBDO would “take around a month, but we will continue to service Gillette till August 15”. The source added that the account was worth Rs 20 crore.
However, the media duties would continue to be with Madison Media, a source confirmed.
McCann is also to lose the Gillette business in the key markets of China and Russia.
To recapitulate, P&G acquired Gillette in January 2005. Some of the brands in the Gillette portfolio include Gillette Mach3 Turbo, Gillette Sensor Excel, Gillette M3Power, Oral-B, Braun and Duracell among others. Now that Gillette is part of P&G, it conflicts with McCann's global L’Oreal business.
As reported by exchange4media on May 20, McCann Erickson, part of the Interpublic Group, had to withdraw from the global creative pitch because of a conflict with the SC Johnson account, which is handled by Interpublic Group sibling FCB.
McCann Erickson no longer part of Reckitt Benckiser’s $680 million global review