The roster of European media agencies servicing Procter & Gamble is set to face a stringent reappraisal as the household products giant seeks to slash global costs and invigorate sagging profits.
P&G is already in negotiation with its various media shops across Germany, Italy, Scandinavia and France, although the review excludes the UK. Among those under its steely scrutiny are Starcom MediaVest, Zenith Media and MediaCom.
There is uncertainty in the marketplace as to Procter’s objectives: whether it aims to centralise all European media planning functions with a single netwwork; or simply reduce the size of its Euro-roster.
The only certainty right now is that the Cincinnati colossus means business. Chief executive Alan Lafley has publicly noted that P&G’s present cost structure is twenty per cent higher than its closest competitors and seeks cost savings of between $600 million to $700 million annually by 2004.
News Source: CampaignLive (UK)